The lead product candidate of Modis Therapeutics is MT1621, an investigational deoxynucleoside substrate enhancement therapy.
Currently, MT1621 is in late-stage development for the treatment of Thymidine Kinase 2 deficiency (TK2d). The condition, which can be fatal, is an inherited mitochondrial DNA depletion disorder that mainly affects children.
Modis Therapeutics CEO Modis Therapeutics said: “Zogenix shares our deep commitment to improving treatment options for patients with rare diseases.
“This transaction reflects the strategic value of Modis and the results we have achieved with MT1621 to date, and we are confident that Zogenix is ideally positioned to complete development and bring MT1621 to patients in need as expeditiously as possible.”
As per the deal terms, the biopharma company will get an upfront payment of $250m (£203.58m), made up of $175m (£142.5m) in cash with the remaining $75m (£61.07m) to be in the form of Zogenix’ shares.
The company will also stand to get additional milestone payments, totalling $150m (£122.15m) from Zogenix. Included in these are $100m (£81.43m) should MT1621 secure an approval from the US Food and Drug Administration (FDA) and $50m (£40.72m) if it gets an approval from the European Medicines Agency (EMA).
Furthermore, Modis Therapeutics will also get a 5% royalty on any future net sales of its disease-modifying therapy from Zogenix, which is focused on developing therapies for rare diseases.
Recently, the biopharma company completed a phase 2 retrospective treatment study, called RETRO. The mid-stage trial evaluated MT1621 substrate enhancement therapy in 38 patients with TK2d with results showing a substantial treatment benefit for patients.
Zogenix president and CEO Stephen Farr said: “This transaction advances Zogenix’s mission to become a leading rare disease pharmaceutical company by adding MT1621 to our pipeline of late-stage FINTEPLA programs.
“Based on the compelling clinical data generated to date, we believe that MT1621 has the potential to significantly alter the course of the disease and improve outcomes in patients with TK2d. With Breakthrough Therapy and PRIME designations, MT1621 may be eligible for an accelerated regulatory path in both the U.S. and Europe, and we look forward to meeting and working with regulatory authorities to discuss next steps for the program.”
The transaction, which is subject to meeting of customary closing conditions, and approval of Modis Therapeutics’ shareholders, is expected to be completed next month.