DRTS Stock Shot Up A Whopping 22% Today – Why A $196.5M Prostate Cancer Deal Got Investors Buzzing

• Tolmar will invest $20 million in Alpha Tau at $11.99 per share, representing a 34% premium to the stock’s closing price on Tuesday.
• The deal also includes up to $161.5 million in potential development, regulatory, and commercial milestones.
• Tolmar will also have the option for a similar deal for bladder cancer indication in the future.

Shares of Alpha Tau Medical (DRTS) surged more than 22% on Wednesday, after the widely tracked biotech firm announced a landmark deal with Tolmar to commercialize its lead cancer therapy for prostate cancer in the United States.

Alpha Tau’s lead oncology therapy, Alpha DaRT, is being tested for the treatment of solid tumors.

Tolmar To Get Exclusive Rights For Commercialization

Tolmar, a specialty pharmaceutical firm focused on urology and oncology products, will receive exclusive U.S. commercialization rights for Alpha DaRT in prostate cancer, with an option to expand into bladder cancer.

Alpha Tau will lead clinical development and remain responsible for manufacturing the therapy, while Tolmar will oversee sales and commercialization efforts.

As part of the agreement, Tolmar will invest $20 million in Alpha Tau at $11.99 per share, representing a 34% premium to the stock’s closing price on Tuesday, and contribute an additional $15 million toward expanding U.S. manufacturing capacity.

The deal also includes up to $161.5 million in potential development, regulatory, and commercial milestones. This takes the overall commitment to $196.5 million.

Alpha DaRT Shows Promising Results In Pancreatic Cancer Study

Earlier this week, Alpha Tau reported encouraging results from a pooled analysis of three Phase I/II studies evaluating its Alpha DaRT therapy in patients with pancreatic cancer. The data showed a median overall survival of 11.2 months for metastatic patients.

The therapy also demonstrated a favorable safety profile, with treatment-related adverse events reported in 36% of patients and severe Grade 3 or higher events in just 9%. No treatment-related deaths or chronic toxicities were observed, and all severe adverse events were resolved.

What Does Retail Think Of DRTS?

Retail sentiment for DRTS on Stocktwits remained in the ‘bullish’ territory over the past 24 hours.

One user said the news was “fantastic on so many levels.”

However, another user noted that volumes traded were relatively low.

Around 0.6 million shares changed hands, compared to the daily average of more than one million shares, according to Stocktwits data.

DRTS shares have soared around 114% so far this year.

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