As was confirmed by both the parties involved on Monday, Athersys has signed a development deal with the giant pharmaceutical company Pfizer Inc., worth a whopping $6 Million upfront and an additional potential of bagging about $105 Million, for an experimental stem cell therapy.

As per the terms of the deal, Athersys will be bagging the upfront cash payment as well as research funding for MultiStem, the firm's potential "stem cell-based treatment for inflammatory bowel disease". In addition, the firm is eligible to receive about $105 Million as and when certain performance milestones are received and tiered royalty payments on worldwide sales.

In lieu of the royalties, and some other payments, Athersys has the option of joining with Pfizer to codevelop the drug when Pfizer successfully manages to reach the late-stage development. If the company chooses to exercise this option, it would include dividing development and sales costs as well, alongside profits.

Post the announcement of the deal, in pre-market trading, shares of Athersys almost doubled to $1.99, as compared to Friday's closing price of $1.