June 1 (Reuters) – Biotech firm Edgewise Therapeutics said on Monday it would sell its experimental muscular dystrophy drug and related business to France’s Servier for up to $2.65 billion.
The French drugmaker will secure global rights to the U.S.-based biotech’s candidate, sevasemten, along with associated intellectual property, clinical data and staff supporting the program for $1.55 billion in upfront cash. Edgewise will also be eligible for up to $1.1 billion in milestone payments, the U.S-based company said.
Edgewise was testing sevasemten in Becker and Duchenne muscular dystrophy, with trials showing muscle function benefits in Becker patients and reductions in muscle damage markers, alongside a favourable safety profile in trials.
Both conditions are genetic disorders that cause progressive muscle weakness, with Becker being a milder form of Duchenne. While Duchenne has several drugs and Sarepta Therapeutics’ gene therapy, Elevidys, Becker has no approved treatments.
“The acquisition of Edgewise Therapeutics’ muscular dystrophy business is a key step forward to achieve our Servier 2030 ambition in neurology with a team of talented experts and a promising asset in muscular dystrophies,” Servier President Olivier Laureau said.
The sale, expected to close in the third quarter, would also strengthen Edgewise’s balance sheet, with the company planning to use the proceeds for development of lead candidate EDG-7500.
The drug is being tested for hypertrophic cardiomyopathy, a condition that thickens the heart muscle and makes it harder to pump blood, with 12-week data from its mid-stage trial expected in the second quarter.
(Reporting by Siddhi Mahatole in Bengaluru; Editing by Leroy Leo)
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