Eiger BioPharmaceuticals announces sale of non-strategic assets to Theragene Pharmaceuticals.
Eiger BioPharmaceuticals announced an agreement to sell to Theragene Pharmaceuticals, Inc., a private biotechnology company, a non-strategic asset, Mydicar® (rAAV1-SERCA2a). Financial terms of the agreement include a total upfront of $3.1 million in payments from Theragene to Eiger, comprised of $240,000 in upfront cash and expense reimbursement in addition to $2.85 million in Theragene common stock, plus pre-specified clinical and regulatory milestones totaling $15 million, royalties on net sales, and sublicensing and milestone fees. Theragene has committed to repurchase $1.35 million of the common stock paid to Eiger upon the closing of a financing raise of $4 million or more. Additional financial terms are not being disclosed.
“We are delighted to have successfully monetized a non-strategic asset at favorable terms with the potential to generate additional monetary value to Eiger over time,” said David Cory, President and CEO of Eiger. “Building on the significant progress we made in 2017 across our Phase 2 programs, over the coming months we anticipate achieving numerous important value-driving milestones as we continue to advance our proprietary pipeline of therapeutically differentiated product candidates for the treatment of orphan diseases. We wish Theragene well in their efforts to develop and commercialize Mydicar, and look forward to participating in their potential success.”
“We are excited for the opportunity to advance the clinical development of Mydicar,” said Jon Berglin, CEO of Theragene. “We firmly believe in the potential of this gene therapy to improve the lives of those with heart disease. Our gene therapy expertise and strong relationships with the original developers of Mydicar will allow us the best opportunity to successfully and efficiently advance this therapy.”
Mydicar® is a novel breakthrough cardiovascular gene therapy product that utilizes rAAV1 (recombinant adeno-associated virus 1) to deliver SERCA2a (sarcoplasmic reticulum Ca2+-ATPase protein) to cardiac myocytes. SERCA2a is crucial to the normal function of cardiac myocytes. Preclinical, Phase 1b, and Phase 2a studies have demonstrated safety and efficacy. Studies were conducted by Celladon Corporation which later merged with Eiger in March 2016. Although the Phase 2b study design endpoints were not met, safety was proven and overall analysis indicated a trend in favor of therapy. Further development is indicated.
(Source: PR Newswire)