Zogenix Agrees Modis Purchase
US pharma Zogenix has agreed to buy Modis Therapeutics, a privately held biopharmaceutical company focused on developing novel therapies for rare genetic diseases with high unmet medical need.
The acquisition remains subject to customary conditions as well as antitrust approval but is expected to complete in September 2019.
Modis’s lead candidate is MT1621, an investigational deoxynucleoside substrate enhancement therapy that is in late-stage development for treating Thymidine Kinase 2 deficiency (TK2d). This inherited genetic disorder presents as progressive and severe muscle weakness that impairs movement, breathing and eating. There are currently no approved treatments for the disease, which is often fatal.
A Phase 2 retrospective treatment study has recently completed with results demonstrating a substantial improvement in patients’ functional abilities.
Stephen Farr, president and CEO of Zogenix, said the transaction advances its mission to become a leading rare disease pharma company. “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,” he said. “With Breakthrough Therapy and PRIME designations, MT1621 may be eligible for an accelerated regulatory path in both the US and Europe and we look forward to meeting and working with regulatory authorities to discuss next steps for the program.”
Zogenix will make an upfront payment of $250 million, comprised of $175 million in cash and $75 million in its common stock. In addition, Modis is eligible to receive milestone payments of $100 million upon approval by the US Food and Drug Administration and $50 million upon approval in Europe by the European Medicines Agency. Zogenix will also pay 5% royalties on future net sales of MT1621.
Modis added that it is also planning to conduct additional clinical studies with the goal of obtaining regulatory approvals to make MT1621 available to patients globally. The company was formed in 2016 through collaboration with academic experts in mitochondrial biology.
