What happened
According to data compiled by S&P Global Market Intelligence, genetics testing company Invitae's (NVTA -94.44%) stock was up 6% in price week to date as of Friday before market open. Investors reacted quite positively to news of a new company partnership with a heavy hitter in the pharmaceutical world.
So what
That partner is global pharmaceutical titan AstraZeneca (AZN 0.19%), which will utilize Invitae's Ciitizen natural history data in a clinical study of cholangiocarcinoma -- a rare form of bile duct cancer. Under the terms of the arrangement, Invitae and AstraZeneca will share this data, which derives from the community of advocacy group the Cholangiocarcinoma Foundation and has been provided by patient consent.
Invitae did not divulge the financial terms of the data-sharing deal.
In the biotech company's press release heralding the arrangement, it quoted its general manager of patient network and data, Farid Vij, as saying that the deal "demonstrates that we can generate data at a level of quality that can inform key insights and decisions for both AstraZeneca and cholangiocarcinoma patients. We can't wait to see what important disease and treatment insights AstraZeneca learns from this meaningful cohort."
Now what
It's hard to gauge the impact of any partnership deal on a company's finances and operations if little to no particulars are divulged.
Regardless, AstraZeneca is a top name in the pharmaceutical world and this arrangement will almost certainly burnish Invitae's reputation, particularly in the segment of cutting-edge cancer diagnostics. Investors were well justified in trading the stock up on the news.
