Evgen Pharma said it has licensed the global rights for lead asset SFX-01 in neurodevelopmental disorders and schizophrenia to Swiss group Stalicla in a deal worth up to US$160.5mln if all milestones are passed.
Stalicla, which specialises in identifying specific phenotypes of autism spectrum disorder (ASD), will pay US$0.5mln upfront. Other payment triggers include the completion of an upcoming phase 1 trial and the receipt of IND status in the US.
All the US$160.5mln becomes due on the first neurodevelopmental disorder indication with Evgen to receive royalties in the low to medium double digits on any sales.
Evgen is developing synthetic sulforaphane-based medicines for the treatment of multiple diseases including cancer and inflammation but neuro disorders are a new area.
The company said previous studies of other sources of sulforaphane had shown evidence of clinical efficacy in improving symptoms of ASD. In those studies, patient heterogeneity was a challenge, Evgen added, especially in identifying those individuals most likely to respond to therapy, but Stalicla has a unique, proprietary technology to identify ASD patients who are most likely to respond to SFX-01.
This screening approach has already been used successfully to identify ideal patients for other ASD drug trials.
Evgen and Stalicla will collaborate initially on a clinical programme in ASD, with the Swiss group funding all clinical development activities.
In a statement, Huw Jones, Evgen's CEO, said: "This is an exciting opportunity to work with Stalicla to develop a potential treatment for ASD and other neuropsychiatric disorders.
“There are no current approved treatments for ASD but a molecular target activated by SFX-01 offers considerable promise in alleviating some of the complex behavioural challenges experienced by people with these conditions."
Autism spectrum disorder or ASD is a group of neurodevelopmental disorders (NDDs) currently diagnosed based on core behavioural features, without specific biological criteria.
"Stalicla is a unique partner in ASD, with its proprietary technology for screening those patients who are most likely to respond to SFX-01," Jones added.