Tracon Pharmaceuticals (NASDAQ:TCON) stock is rocketing higher on Tuesday as investors react to a licensing agreement for its product development platform (PDP).
According to a press release from the company, it has licensed this to a clinical-stage biotech company for an upfront payment of $3 million. This covers the design, conduct and administration of clinical trials, as well as research and development activities connected to them.
Charles Theuer, M.D., Ph.D., CEO of Tracon Pharmaceuticals, said the following about the licensing news.
“We are now in a position to widely license our PDP to allow clinical stage biotechnology and pharmaceutical companies to transform their clinical operations with the expectation of potentially dramatic cost reductions and shorter clinical trial timelines.”
TCON Stock Reactions on Tuesday
Following news of this agreement, shares of TCON stock are taking off with heavy trading. That has more than 23 million shares changing hands as of this writing. For the record, that’s well above its daily average trading volume of about 2.7 million shares.
TCON stock is up 18.8% as of Tuesday morning but was down 88% year-to-date when markets closed on Monday.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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