Tekmira Pharmaceuticals Corp.’s (TSX:TKM) share value jumped in midday trading Friday on news the company has signed a contract with the U.S. government for the treatment of the deadly Ebola virus.
The contract could be worth up to US$140 million.
Burnaby-based Tekmira is a biopharmaceutical company focused on RNA interference (RNAi) therapeutics, which are believed to have the ability to treat diseases by silencing disease-causing genes.
The initial phase of the contract is worth US$34.7 million and will be used to advance one of its candidate drugs through to a phase one clinical trial with the U.S. Food and Drug Administration. The first phase will also use Tekmira’s proprietary SNALP drug delivery system.
President and CEO Mark Murray said: “This contract is a significant accomplishment for Tekmira and a proud moment for our team."
The contract is with the U.S. Department of Defense chemical and biological defense program through the U.S. Army Space and Missile Defense Command.
The initial phase of the contract is funded through the transformational technologies program, which the U.S. defense department created to develop medical countermeasures to protect soldiers from biological weapons.
In an interview with BIV, Tekmira CFO Ian Mortimer said the company has been working the U.S. Army for a number of years to develop a treatment for Ebola.
Tekmira published data in May that showed its Ebola SNALP treatment provided 100% protection to primates previously infected with a lethal dose of the virus.
Mortimer said the rise in the company’s share value was proof its technologies work.
“It’s further validation of the platform, our technology and our approach.”
At press time, Tekmira’s shares traded at $1.85. Tekmira's share price range during the last week: $1.34 to $1.36; 52-week high: $1.84; 52-week low: $0.69.