Stock Alert: Agios Pharma Jumps 30% On Deal To Sell Cancer Biz To Servier

(RTTNews) - Shares of Agios Pharmaceuticals, Inc. (AGIO) are currently gaining over 32% after the company announced plans to sell its cancer treatment business to Servier for up to $2 billion.

AGIO is currently trading at $43.96, up $10.75 or 32.36%, on the Nasdaq.

Agios Pharmaceuticals, a company focused to treat cancer and rare genetic diseases, announced it has agreed to sell its commercial, clinical and research-stage oncology portfolio to Servier, an independent pharmaceutical company.

Agios will receive a cash consideration of up to $2.0 billion, including $1.8 billion in upfront cash and $200 million in a potential future milestone payment for vorasidenib, as well as 5% royalties on U.S. net sales of ivosidenib tablets.

Agios said that it will move forward with a focus on accelerating and expanding its genetically defined disease portfolio, including the mitapivat clinical programs and a robust pipeline of therapeutic candidates.