First Wave to repurpose Capeserod in deal with Sanofi

Florida, USA-based clinical-stage biotech First Wave BioPharma (Nasdaq: FWBI) has entered an agreement with French pharma major Sanofi (Euronext: SAN) to license Capeserod, a selective 5-HT4 receptor partial agonist, which First Wave will repurpose and develop for gastrointestinal (GI) indications.

The news sent First Wave’s shares soaring as much as 82% and still closing up nearly 17% at $0.51 yesterday.

First Wave will receive an exclusive, global license for Capeserod and will assume responsibility for all future clinical development. The accord provides a right of first refusal for Sanofi to reacquire Capeserod following certain stages of clinical development and to commercialize the product.