Ovid Therapeutics and Takeda have agreed a deal worth up to $856 million, allowing the latter to take over development and commercialisation of the epilepsy drug soticlestat.
The companies’ original 2017 collaboration will now conclude, meaning Ovid will have no further development or milestone obligations themselves. Takeda will now own all global rights to the treatment.
Under the previous agreement, Takeda received equity in Ovid and was eligible to receive up to $85 million in payments for regulatory milestones, including the initiation of Phase III clinical trials, while Ovid led global development of soticlestat.
Takeda will pay Ovid $196 million up front as part of the new deal, with the remaining $660 million paid upon achieving development, regulatory, and sales milestones. They will now begin Phase III studies in children and adults with Dravet syndrome (DS) and Lennox-Gastaut syndrome (LGS) in the second half of this year.
The two companies reported results from their Phase II ELEKTRA study in August last year, in which soticlestat met its primary endpoint of reducing seizure frequency in pediatric patients with DS or LGS. The treatment would be the first-in-class therapy to reduce seizure prevalence in children with the diseases.
Dr Andy Plump PhD, President of R&D at Takeda, said: “I would like to thank Ovid for their thoughtful and productive collaboration. Together we generated positive Phase II ELEKTRA study data, and as a result, soticlestat is poised to enter two pivotal trials.”
Dr Jeremy Levin, Chairman and CEO of Ovid, added: “This new agreement is a positive outcome for patients, for Ovid and for Takeda. Jointly, we have set the stage, optimised the program and enabled it to accelerate.
“Ovid may benefit significantly, but without the obligation to commit the substantial capital needed over the coming years as soticlestat completes pivotal trials and, if successful, enters the global market.”
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