AVEO Pharmaceuticals, Inc. (AVEO) Stock Soars After Company Reaches Huge $396 Million Agreement with EUSA Pharma


AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) shares are trading up significantly this morning in response to a huge licensing agreement that the company has signed with EUSA Pharma, a relatively new specialty pharmaceutial company in the UK.

AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) broke news of the deal this morning, in a realease at 9:00 AM ET. It will provide EUSA with an exlcusive license to renal cell carcinoma treatment Tivozanib. Tivozanib is half-life inhibitor of the three vascular endothelial growth factor receptors.

Under the terms of the deal, EUSA will pay AVEO Pharmaceuticals, Inc. (NASDAQ:AVEO) $2.5 million up front and then potentially another $394 million for certain milestones and achievements.

The stock is up 17.49% or $0.18 following the news, hitting $1.21 per share. About 985,892 shares traded hands or up 109.53% from the average. AVEO has declined 16.94% since May 18, 2015 and is currently downtrending. It has underperformed the S&P500 by 14.67%.

The institutional sentiment decreased to 0.55 in Q2 2015. It’s down 0.45, from 1 in 2015Q2. The ratio dived, as 6 funds sold all their AVEO Pharmaceuticals, Inc. shares they owned while 16 reduced their positions. 2 funds bought stakes while 10 increased their total positions. Institutions now own 20.15 million shares which is 18.43% more than the previous share count of 17.01 million in 2015Q2.

Greylock Xi Gp Limited Partnership holds 9.17% of its total portfolio in AVEO Pharmaceuticals, Inc., equating to 584,004 shares. Deer Vi & Co. Llc owns 675,242 shares representing 1.22% of their total US portfolio. Moreover, Sarissa Capital Management Lp has 0.69% of their total portfolio invested in the company, equating to 2.31 million shares. The Massachusetts-based Cormorant Asset Management Llc has a total of 0.31% of their portfolio invested in the stock. Gruss Capital Management Lp, a New York-based fund reported 1.56 million shares owned.

AVEO Pharmaceuticals, Inc. is a biopharmaceutical company. The company has a market cap of $70.40 million. The Company’s platform has delivered insights into cancer and related disease. It currently has negative earnings. The Company’s Human Response Platform (HRP) provides insights into cancer and related disease biology and is leveraged in the discovery and clinical development of its therapeutic candidates.