Dec 15 (Reuters) - Shares of Array BioPharma Inc (ARRY.O) surged about 30 percent Tuesday, a day after the company said it inked a partnership deal with Amgen Inc (AMGN.O) for the development and marketing of its Type 2 diabetes drug.
Under the terms of the agreement, Array will receive an upfront payment of $60 million and additional milestone payments on its experimental glucokinase activator program, including ARRY-403.
The drug is currently being tested in an early-stage trial in patients with Type 2 diabetes.
As part of the deal, Amgen will have exclusive worldwide rights for the drug and will be responsible for future clinical development and commercialization of the drug.
Array will receive double-digit royalties on sales of ARRY-403, the company said in statement.
Shares of the company rose more than 30 percent at $2.95 in early morning trade on Nasdaq. (Reporting by Krishnakali Sengupta in Bangalore; Editing by Anil D'Silva)