Altus signs drug development deal with Genentech

Altus Pharmaceuticals Inc. of Cambridge said it has signed a deal with Genentech Inc. to develop and commercialize Altus's growth-hormone candidate, Altu-238, which could be used to treat patients with growth hormone deficiencies. Genentech, based in California, will make a $15 million up-front payment to Altus and buy $15 million of the company's stock.

Altus said the agreement, which covers North America, could yield an additional $140 million in payments if the product succeeds, and another $110 million if Genentech exercises an option to expand the agreement worldwide.

"Through this agreement, we are now collaborating with a premier biopharmaceutical company that is a leader in the US growth hormone market," Altus chief executive Sheldon Berkle said in a statement.

In late morning trading on the Nasdaq Stock Exchange, Altus shares rose 38 cents to $19.36.
(By Chris Reidy, Globe staff)