BLOOMBERG . 27 December 2011 .By Manuel Baigorri
Dec. 27 (Bloomberg) -- Zeltia SA, which develops cancer drugs from sea creatures, gained the most in more than two months after an agreement with Johnson & Johnson on how to pursue the U.S. development of its cancer medicine Yondelis.
Zeltia rose as much as 13 percent to 1.63 euros, the biggest intraday gain since Oct. 25, and was up 10 percent at 1:38 p.m. in Madrid.
The Spanish company’s Pharma Mar division will get a $25 million payment this year from Johnson & Johnson’s Janssen unit, which will conduct a new advanced clinical test on patients with ovarian cancer after U.S. regulators asked for more research, Zeltia said in a statement today.
Zeltia, the biggest gainer at the Madrid Stock Exchange General Index today, may also get as much as $85 million through 2015 if certain targets are met, the Madrid-based company said.
The Spanish company’s stock has fallen 43 percent this year, hurt by setbacks for Yondelis in the U.S. In April, Zeltia missed out on a $10 million payment from Johnson & Johnson after the New Brunswick, New Jersey-based drugmaker withdrew its U.S. regulatory application for the medicine. The Food and Drug Administration requested additional tests before clearing the treatment for patients with ovarian cancer. The drug is approved for sale in that indication in Europe and Canada.
--Editor: Tom Lavell, Marthe Fourcade.