Shares of Tekmira Pharmaceuticals Corp. (TSX: T.TKM, Stock Forum) (NASDAQ: TKMR, Stock Forum) jumped 9.8% Tuesday after the company said it has reached a settlement with Alnylam Pharmaceuticals Inc. (NASDAQ: ALNY, Stock Forum) that resolves all litigation between the companies.
In a press release, Tekmira said it has signed a new licensing agreement that restructures the relationship and provides clarity on all intellectual property and licensing issues between the companies.
As a result of the restructuring and new agreements, Tekmira will receive $65 million within 10 days and is eligible to receive $10 million in near-term milestone payments expected to be received in 2013.
“The settlement and restructuring announced (Monday) gives us and the entire RNAi field, clarity around the intellectual property that protects our lipid nanoparticle (LNP) technology,’’ said Dr. Mark Murray, Tekmira’s President and CEO.
Trading at $5.61, Tekmira has a market cap of $78.6 million, based on over 14 million shares outstanding. The 52-week range is $5.35 and $1.41. Alnylam Pharma rose 5% to $16.94, leaving the company with a market cap of $887.9 million, based on 52.4 million shares outstanding. The 52-week range is $21.38 and $6.50.