Karo Bio AB (KARO), a Swedish biotechnology company focused on autoimmune diseases, rose the most in five months in Stockholm trading after reaching its first milestone payment in a research agreement with Pfizer Inc. (PFE:US)
The shares advanced as much as 31 percent, the biggest intraday gain since April 2. Karo Bio rose 19 percent to 0.38 krona as of 12:42 p.m. local time, making it the biggest gainer in the OMX Stockholm All-Share Index. The volume traded was almost 12 times the three-month daily average.
“The teams from Karo Bio and Pfizer have enjoyed an excellent interaction and relationship which has helped meet this goal,” Karo Bio Chief Executive Officer Per Bengtsson said today in a statement. “This achievement clearly demonstrates the value Karo Bio brings to its partners in the area of nuclear receptor drug discovery.”
The company didn’t disclose the size of the first payment. The agreement with Pfizer, signed on Dec. 24, 2011 and extended in June this year, makes Karo Bio eligible for more than $200 million in milestone payments, the company said in June. The agreement involves developing treatments for diseases such as rheumatoid arthritis, multiple sclerosis and psoriasis using the nuclear hormone receptor RORgamma. Pfizer funds the research and will have the sales rights.
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