Shares in Santhera Pharmaceuticals (SIX:SANN, OTC:SPHDF) rose 7.4% to CHF 13.14 after the group struck a licensing deal worth up to $205 million plus royalties for its Duchenne muscular dystrophy drug AGAMREE, strengthening its balance sheet and extending its global reach.
Under the agreement, announced on Thursday, Santhera has licensed rights to the treatment in Japan, South Korea, Australia and New Zealand to Nxera Pharma.
The deal includes an upfront payment of $40 million, made up of $30 million in cash and a $10 million equity investment priced at CHF 14.91 a share, a 20% premium to Santhera’s 30-day volume-weighted average price.
Santhera is also eligible to receive up to $165 million in regulatory and sales milestones, alongside double-digit tiered royalties on net sales.
Nxera will be responsible for regulatory approvals, including running a required bridging clinical study, as well as manufacturing and commercialisation across the licensed territories. AGAMREE, also known as vamorolone, is already approved in the US, Europe, the UK, China, Hong Kong and Canada.
Chief executive Dario Eklund said the deal marked a “significant milestone” in expanding access to the drug, while Nxera said it had the potential to change the standard of care for Duchenne patients.