PureTech Health PLC (LSE:PRTC, NASDAQ:PRTC, OTC:PTCHF) shares jumped 10% higher after it agreed a US$500mln royalty deal, US$100mln of which will be paid upfront.
In the first half hour of trading the shares were up 21.49p at 224.49p.
Earlier, investors were told Royalty Pharma was willing to stump up the sum to acquire an interest in PureTech's royalty in Karuna Therapeutics' KarXT, a drug being developed for schizophrenia.
Earlier this week, it was revealed the putative treatment had successfully negotiated a phase III clinical trial.
"We have been saying for some time that the markets do not appreciate the underlying value in [PureTech's] portfolio – including the royalties of KarXT," said broker Peel Hunt repeating its 'buy' recommendation and 930p price target.