Shares in Shield Therapeutics PLC (AIM:STX, OTCQX:SHIEF) were almost 7% higher in afternoon trading after the commercial-stage pharma group 'fortified' its balance sheet with a $5.7m monetisation deal.
Under the terms of the agreement, AOP Health International, the company's major shareholder, will provide Shield with the funds in return for the right to the $11.4 million milestone payment linked to the approval of its product Accrufer in China.
CEO Greg Maddison said the cash injection (along with the $8 million in the bank as of the end of May), will bolster the company's balance during commercial ramp-up in the US.
US investment bank Stifel welcomed the deal: "Recent acceleration of Accrufer Rx [prescription] growth in the US also increases our confidence that Accrufer will achieve our forecasts."
In afternoon trading, the stock was up 0.11p at 1.76p.