(Reuters) -Opko Health Inc said on Wednesday it signed a deal with Merck & Co Inc potentially worth up to $922.5 million for its experimental Epstein-Barr virus vaccine.
Shares of Opko rose as much as 24%, before paring gains to trade 9.4% higher at $1.16.
Merck will take over the clinical and regulatory activities related to the vaccine, as well its commercialization once the drugmaker files a joint application with Opko unit ModeX Therapeutics to test it in humans, the company said.
Opko will receive an upfront payment of $50 million and is eligible for milestone payments of up to $872.5 million, plus royalties, on global sales.
There is currently no vaccine for the Epstein-Barr virus, which is the leading cause of mononucleosis, or mono, commonly called the “kissing disease”.
(Reporting by Aditya Samal in Bengaluru; Editing by Pooja Desai)
Ad: Save every day with Amazon Deals: Check out today's daily deals on Amazon.