Zogenix, Inc. (NASDAQ: ZGNX), an Emeryville, California-based pharmaceutical company developing rare disease therapies, acquired Modis Therapeutics, Inc., an Oakland, CA-based biopharmaceutical company focused on developing novel therapies for rare genetic diseases, for $250m.
Under the terms of the deal, subject to the satisfaction of customary closing conditions, Modis will receive an upfront payment of $250m, comprised of $175m in cash and $75m in Zogenix common stock. The acquired company is also eligible to receive additional milestone payments consisting of $100m upon receipt of U.S. Food and Drug Administration approval of MT1621 in the U.S. and $50m upon European Medicines Agency approval in Europe. Zogenix will also pay a 5% royalty on any future net sales of MT1621.
Led by Joshua Grass, CEO, Modis Therapeutics is advancing MT1621, an investigational deoxynucleoside substrate enhancement therapy, which is in late-stage development for the treatment of Thymidine Kinase 2 deficiency (TK2d), an inherited mitochondrial DNA depletion disorder that predominantly affects children and is often fatal. The company was formed in 2016 through a collaboration with academic experts in mitochondrial biology. It also has offices in New York City.
Led by Stephen J. Farr, Ph.D., President and CEO, Zogenix is a global pharmaceutical company committed to developing and commercializing transformative
therapies to improve the lives of patients and their families living with rare diseases. The company is preparing to resubmit its New Drug Application for FINTEPLA® (ZX008, fenfluramine) to the U.S. Food & Drug Administration for the treatment of seizures associated with Dravet syndrome, a rare and often-catastrophic infantonset epilepsy that can include frequent and prolonged seizures and significant intellectual, behavioral, and motor disabilities. FINTEPLA® is under review by the European Medicines Agency and is in development in Japan, also for the treatment of Dravet syndrome, and is also in development globally for the treatment of Lennox-Gastaut syndrome, another severe childhood onset epilepsy.