Processa Pharmaceuticals (PCSA) Shares Soar 150% On Gastroparesis Drug Deal

Processa Pharmaceuticals Inc (NASDAQ:PCSA) shares are trading higher by 1198% to 66 cents Tuesday morning after announcing a binding term sheet with Intact Therapeutics Inc.

What To Know: The agreement grants Intact Therapeutics an exclusive option to license PCS12852, a promising 5-HT4 receptor agonist aimed at treating gastroparesis and other gastrointestinal motility disorders.

This deal presents a significant financial opportunity for Processa. The company stands to receive a $2.5 million option exercise fee, up to $20 million in development and regulatory milestone payments, and potentially over $432.5 million in commercial milestone payments based on net product sales.

Furthermore, Processa will earn a double-digit royalty on worldwide net sales of licensed products (excluding South Korea) and acquire an equity stake in Intact Therapeutics.

PCS12852 has completed a Phase 2a trial, showing a favorable safety and efficacy profile for diabetic gastroparesis, a debilitating condition with few current treatment options. Processa CEO George Ng emphasized that this agreement allows them to “unlock the value of our non-oncology assets” while maintaining focus on cancer therapies.

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How To Buy PCSA Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Processa Pharmaceuticals’ case, it is in the Health Care sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, PCSA has a 52-week high of $3.10 and a 52-week low of $0.15.

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