Pharma company strikes deal worth up to $160m in milestone payments
Evgen Pharma, the Cheshire-based clinical stage drug development company, has struck a deal with a Swiss company which could be worth up to $160.5m in milestone payments.
The Alderley Park-based pharma business has licensed the global rights for its lead asset SFX-01 in neurodevelopmental disorders and schizophrenia to Stalicla SA, a Swiss company specialising in the identification of specific phenotypes of autism spectrum disorder (ASD), using its proprietary precision medicine platform.
Evgen retains the global rights for all other indications.
The deal provides $500,000 up front, and $500,000 on completion of the already fully financed Evgen-sponsored human volunteer Phase 1 study, anticipated during the second quarter of 2023.
Milestone payments up to commercial launch are $26.5m, including $5m on grant of IND by the FDA, anticipated in late 2023. Total milestones of $160.5m are payable to Evgen in relation to the first neurodevelopmental disorder indication under the license.
Royalties payable to Evgen on sales are in the low to medium double-digit range in all scenarios, including on-licensing by Stalicla and use of SFX-01 in further licensed indications.
Stalicla has a unique, proprietary technology to identify ASD patients who are most likely to respond to SFX-01. This screening approach has already been used successfully to identify ideal patients for other ASD drug trials and is a key differentiator for Stalicla in developing drugs for such a wide spectrum disorder as ASD.
Evgen’s partnership with Stalicla will enable the targeting of patient groups most likely to benefit from SFX-01, not only de-risking the clinical development but potentially bringing a therapeutic option to those individuals who are currently underserved, in a quick and efficient manner.
Dr Huw Jones, Evgen CEO, said: “This is an exciting opportunity to work with Stalicla to develop a potential treatment for ASD and other neuropsychiatric disorders.
“There are no current approved treatments for ASD but a molecular target activated by SFX-01 offers considerable promise in alleviating some of the complex behavioural challenges experienced by people with these conditions.”
He added: “Stalicla is a unique partner in ASD, with its proprietary technology for screening those patients who are most likely to respond to SFX-01.
“This recognition of SFX-01 as a potential treatment for a major neuropsychiatric condition, demonstrates the variety of potential uses of our Sulforadex platform, along with our ability to execute on our business model. Entering the CNS (Central Nervous System) space with this partnership is especially compelling due to the promising clinical data for sulforaphane in this area in earlier studies.”
