Paratek Pharma jumps on BARDA award for antibiotic

Paratek Pharmaceuticals

19/12/2019 11:05

** Shares of drug developer  PRTK.O  surge 69.2% to $4.99 -
stock top pct gainer across exchanges
    ** Co, after hours on Wed, said it was awarded contract
worth up to $285 mln from Biomedical Advanced Research and
Development Authority (BARDA)
    ** Contract is for five years, with option to extend to 10
years, to support development of co's antibiotic Nuzyra for
treatment of pulmonary anthrax
    ** Anthrax, a rare but serious illness that mainly affects
livestock, is caused by a spore-forming bacterium; when inhaled,
it is often fatal, even with treatment
    ** Contract also includes option to procure up to 10,000
treatment courses of Nuzyra for the Strategic National Stockpile
for use against potential biothreats  urn:newsml:reuters.com:*:nGNX3yYfC1
    ** Brokerage SVB Leerink estimates award is worth up to
$4.67/shr, notes co's new expectation that award could extend
cash runway into first half 2023 from prior estimate of Q1 2021
    ** Nuzyra was approved in October 2018 to treat bacterial
pneumonia and skin infections  urn:newsml:reuters.com:*:nL4N1WJ26L
    ** Up to Wednesday's close, stock had fallen ~42% YTD

 (Reporting by Tamara Mathias in Bengaluru)
 ((Tamara.Mathias@thomsonreuters.com; within U.S. +1 646 223
8780, outside U.S. +91 806749 1208;))