Santhera Pharmaceuticals (SIX:SANN, OTC:SPHDF) has signed a licensing deal worth up to $205 million plus royalties for its Duchenne muscular dystrophy treatment AGAMREE, handing rights in key Asia-Pacific markets to Nxera Pharma.
Under the agreement, announced on Thursday, Santhera will receive $40 million upfront, made up of $30 million in cash and a $10 million equity investment by Nxera at CHF 14.91 a share.
The share price represents a 20% premium to Santhera’s 30-day volume-weighted average price. Nxera will also pay up to $165 million in regulatory and sales milestones, alongside double-digit tiered royalties on net sales.
The deal covers Japan, South Korea, Australia and New Zealand, markets where Santhera does not currently have a commercial presence.
Nxera will take responsibility for regulatory approval, including running a so-called bridging clinical study required by local regulators, as well as manufacturing and commercialisation in the licensed territories.
AGAMREE, also known as vamorolone, is approved for the treatment of Duchenne muscular dystrophy in the United States, Europe, the UK, China, Hong Kong and Canada.
It is positioned as an alternative to standard corticosteroids, aiming to retain anti-inflammatory benefits while reducing long-term side effects associated with steroid use in children.
Dario Eklund, chief executive of Santhera, said the agreement marked “a significant milestone” in expanding global access to the drug, adding that Nxera’s experience in Japan and the wider region made it “an ideal partner”.
Nxera, which is listed in Tokyo, said AGAMREE had the potential to change the standard of care in Duchenne by allowing earlier and longer-term treatment.
Christopher Cargill, its chief executive, highlighted the group’s prior experience with the drug through its acquisition of parts of Idorsia’s Asia-Pacific business in 2023.
For Santhera, the deal brings immediate funding while limiting the need to build its own commercial infrastructure in Asia-Pacific. The equity investment will see Nxera acquire about 530,000 Santhera shares, subject to a customary lock-up period.
Santhera has previously licensed AGAMREE rights in North America to Catalyst Pharmaceuticals and in China and parts of Southeast Asia to Sperogenix Therapeutics.