Alios BioPharma licenses two nucleotide drug candidates to Vertex for up to $1.5 billion

Vertex Pharmaceuticals (Nasdaq: VRTX) has entered into an exclusive worldwide licensing accord with Alios BioPharma (Nasdaq OB: AAST) that will add two distinct nucleotide analogues to Vertex's hepatitis C portfolio, at a potential cost to the firm of over $1.5 billion.

The compounds, which were discovered by Alios and are known as ALS-2200 and ALS-2158, have shown in in vitro studies to be potent inhibitors of the hepatitis C virus (HCV) polymerase, an enzyme essential for replication of the virus. The addition of these compounds provides Vertex with multiple opportunities to develop potential, new, all-oral combination regimens for chronic hepatitis C. Vertex expects ALS-2200 and ALS-2158 to enter clinical development later this year.

Terms of the transaction