Share prices for Dova Pharmaceuticals showed a minor decrease on Monday (March 19) following the company’s announcement of a distribution agreement with China-based Fosun Pharma.
Dova Pharmaceuticals (NASDAQ:DOVA) started off the week right by announcing on Monday (March 19) a distribution agreement through its subsidiary AkaRx, with Fosun Pharmaceutical (SHA:600196) for China and Hong Kong.
According to the press release, the agreement includes an undisclosed upfront payment, milestone payments, and a fixed transfer price for product supplied. In China and Hong Kong Fosun Pharma has the rights to develop, commercialize and assist AkaRx with registration for the development of avatrombopag in China.
“Fosun Pharma is a highly qualified partner, and we are excited to work with them as we look to expand avatrombopag internationally,” Alex Sapir, CEO of Dova said in the release, adding that Fosun has the experience to assist Dova with the marketing process to “ maximize the distribution of avatrombopag in mainland China and Hong Kong.”
Avatrombopag is a drug candidate treatment for thrombocytopenia, which met all primary endpoints in two identical phase 3 clinical trials. Dova filed a new drug application (NDA) with the US Food and Drug Administration (FDA) and expects to receive a response to the initial indication by May 21, 2018.
In the US, there are about 7.4 million patients with chronic liver disease (CLD), with 1.1 million of those patients suffering from thrombocytopenia. Patients with the disorder have a low platelet count, which is a common complication of CLD. There are no approved drug treatments approved by the FDA or the European Medicines Agency for thrombocytopenia.
Dova is focused on acquiring, developing and commercializing drug candidates for rare diseases, specifically on acute and chronic thrombocytopenia. Fosun Pharmaceutical is subsidiary of the multinational company Fosun.
Dova’s share price opened Monday’s trading at $27.20. Following the announcement, shares of the company decreased 8.02 percent to close at $25 Zacks analyst report recommends a “hold” rating on the share.
Last month, analyst Eun Yang with Jefferies gave the share a “buy” rating with a $40 price target.
Share prices don’t always reflect company news, which has been reflected by Dova’s announcement on Monday. Looking ahead, investors should follow Dova to stay informed about its avatrombopag development in China and the FDA approval in May.
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Securities Disclosure: I, Gabrielle Lakusta, hold no direct investment interest in any company mentioned in this article.