Wayne-based Aclaris Therapeutics has entered into an exclusive licensing agreement with a Chinese biotechnology company worth up to $960 million, causing a spike in the company’s shares earlier this week, writes John George for the Philadelphia Business Journal. 

The Biosion deal involves an experimental treatment for severe asthma and atopic dermatitis, a skin disorder. As part of the deal, Aclaris will pay the Chinese company over $40 million in cash for the upfront license fee, along with reimbursement for some development costs, drug product materials, and warrants for almost 14.3 million shares of Aclaris common stock. Biosion is also eligible for additional milestone payments of up to $920 million. 

In addition, Aclaris reached a deal to raise $80 million through a private stock sale. 

According to Aclaris CEO Dr. Neal Walker, the licensing deal finalizes the strategic review process initiated at the beginning of the year following setbacks with two new drug candidates. 

“In addition, the proceeds from the private placement financing bolsters our balance sheet and provides us with enhanced financial flexibility to support our growth while maintaining our cash runway into 2028,” said Walker. 

The company’s shares rose 36 percent to $2.78 in late Monday morning trading. 

Read more about Aclaris Therapeutics and Biosion making a deal in the Philadelphia Business Journal. 

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