In Tuesday trading, shares of Cell Genesys Inc. soared $0.69 a share, a gain of nearly 30% in one day sparked by more than twenty times the average trading volume. This spike came thanks to the announcement that Cell Genesys has signed Japanese drug maker Takeda Pharmaceutical as a global partner for GVAX Prostate, a prostate cancer vaccine in late-stage development. The partnership will incorporate the development, marketing and commercialization of the immunotherapy globally.

The exact terms of the deal are not known, but Takeda has agreed to pay Cell Genesys $50 million up front, in addition to a potential $270 million tied to regulatory approvals and commercialization. On top of those figures, Cell Genesys will also receive royalties on all future sales. The drug is currently in Phase 3 clinical testing, but GVAX is not the only drug Cell Genesys is working on. It is also actively monitoring Phase 2 clinical trials for similar immunotherapy drugs for both leukemia and pancreatic cancer.

Dr. Stephen Shewin, the CEO of Cell Genesys, explained the entire situation in a conference call to shareholders and the media on Tuesday. He said that Takeda is going to pay for all costs associated with testing, development and commercialization of the drug. Sherwin also added, “In our view this is one of the most important transactions in the history of this company. We negotiated the best possible deal and the best possible partnership for this product. Takeda has made a clear commitment for the GVAX prostate program, and they have a special interest in prostate cancer and are looking to build their oncology segment…”

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