Alpha Tau Medical (DRTS) and Tolmar International have agreed to develop and commercialize Alpha DaRT therapy for the treatment of prostate cancer in the US, the companies said Wednesday.

Under the agreement, Alpha Tau will lead clinical development and manufacture the therapy, while Tolmar International will receive exclusive rights it in the US, according to the companies.

Additionally, the companies said Tolmar International will make a $20 million equity investment in Alpha Tau at $11.99 per share and provide $15 million towards a new US manufacturing facility.

The deal also includes up to $96.5 million in development and regulatory milestones and up to $65 million in commercial milestone payments for the initial indication, Alpha Tau Medical and Tolmar International said.

Alpha Tau said it will sell Alpha DaRT to Tolmar at 60% of onward net sales price, subject to certain adjustments.

Alpha Tau Medical shares were over 15% higher in early Wednesday trading.

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