Tercica soars on Genentech deal

Biotech jumps after deal on growth drug with Genentech though experimental combo treatment years away.

By Aaron Smith, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) -- Tercica stock rallied Wednesday after the California-based biotech announced a deal on a growth drug with Genentech late on Tuesday.

Shares of Tercica (up $0.67 to $6.09, Charts), based in Brisbane, Calif., jumped about 13 percent in active Nasdaq trading about 90 minutes into the session.

The company said after the market closed Tuesday that it inked a deal with Genentech (Charts) to develop a combo drug for kids with a form of growth failure. Genentech, a $78 billion market cap company based in South San Francisco, agreed to pay up to $53 million to Tercica, which has a market cap of $300 million.

Tercica is developing a combo of its drug Increlex with Genentech's growth hormone Nutropin, to form a once-daily injectable treatment for children who don't grow normally. Tercica won't begin phase 2 testing until 2008, meaning the combo is still years away from potential market approval.

Genentech is the world's second-biggest biotech in terms of annual sales, behind Amgen (Charts, Fortune 500). Top of page

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.