Shares of Molecular Templates Inc. MTEM, +52.44% soared 44% in premarket trade Wednesday, after the developer of cancer treatments announced a joint-development partnership with Japan-based Takeda Pharmaceutical Co. Ltd. 4502, -1.08% TKPYY, -1.99% The companies will develop CD38-targeted toxin bodies for the treatment of multiple myeloma. Under terms of the agreement, Takeda will make an upfront payment of $30 million, and Molecular Templates will be eligible to receive up to $632.5 million in milestone payments if the company exercises its co-development option, or up to $337.5 in payments if the option is not exercised. The stock has tumbled 59% year to date through Tuesday, while the iShares Nasdaq Biotechnology ETF IBB, +0.13% has gained 10% and the S&P 500 SPX, +0.13% has tacked on 8.6%.
Have breaking news sent to your inbox. Subscribe to MarketWatch's free Bulletin emails. Sign up here.