Price of the biopharmaceutical company Ovid Therapeutics Inc. (NASDAQ: OVID) is on an uptick in early trades today. The stock was at a rise of +47.13% to $4.36 as of 11:09 a.m. EST followed by news of a global rights deal struck by the company.
What does the deal say?
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Ovid Therapeutics Inc. is a New York-based biopharmaceutical company that is transforming the lives of patients with rare neurological disorders developing treatments through its BoldMedicine approach.
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There are many potential first-in-class medicines in the pipeline at Ovid.
Angelman syndrome, Fragile X syndrome, and rare epilepsies are among these programs, as are programs targeting other monogenetic disorders, which are in their early stages.
Announced today is a new exclusive agreement has been concluded between Takeda Pharmaceutical Company Limited (NYSE:TAK) and Ovid.
- Under the terms of the agreement, Takeda will secure global rights on closing from Ovid for the development and commercialization of the investigational drug soticlestat targeted against Dravet syndrome (DS) and Lennox Gastaut syndrome (LGS).
- Soticlestat is the first-in-class inhibitor of cholesterol 24-hydroxylase (CH24H) discovered at Takeda Research Center in Shonan, Japan.
- Takeda has secured all global rights to soticlestat from Ovid under the new exclusive agreement.
- It will be Takeda’s sole responsibility to move forward with further development and commercialization throughout the world.
- Ovid will no longer be held responsible for any future milestone payments or development and commercialization costs due to Takeda under the original collaboration agreement.
- In addition to the $196 million upfront payment at closing, Ovid may receive an additional $660 million upon reaching milestones in the development, regulatory, and sales phases of the transaction.
- In addition, tiered royalties of 11% to 20% will be paid to Ovid if the FDA approves soticlestat and if it is commercialized.
- Close of the agreement is expected to take place by the end of this month, subject to the satisfaction of regulatory requirements, including the Hart-Scott-Rodino Act.