Santhera jumps, as it out-licenses vamorolone for Greater China

Shares of Swiss biotech Santhera Pharmaceuticals (SIX: SANN) were up 15.4% at 1.50 Swiss francs by early afternoon, after it revealed an exclusive license agreement with China-based rare diseases specialist Sperogenix Therapeutics.

Under the accord, Sperogenix will in-license vamorolone for rare disease indications for a total consideration of up to $124 million, including a double-digit upfront cash compensation and Duchenne muscular dystrophy (DMD)-related US-regulatory milestone payments amounting to a combined $20 million, as well as further double-digit royalties on net sales.

Santhera will grant Sperogenix exclusive development and commercialization rights to vamorolone in DMD and all other rare disease indications for Greater China (including mainland China, Hong Kong, Macau, and Taiwan). Santhera will remain responsible for manufacturing and supply while Sperogenix, which is financed by Lilly Asia Ventures and Morningside Ventures, will focus on regulatory and development work and future commercialization. Sperogenix plans to initiate a regulatory filing for vamorolone for DMD in China upon US Food and Drug Administration approval which could lead to market entry in China as early as in 2024.