Theravance in up to $63.5 million deal with Alfa Wassermann for velusetrag; RuiYi links with arGEN-X on MAb

USA-based Theravance (Nasdaq: THRX) and Italy headquartered Alfa Wassermann have entered into an exclusive development and commercialization agreement in certain countries for velusetrag, the US firm’s investigational 5-HT4 agonist in development for gastrointestinal motility disorders.

Financial terms of the transaction include funding of the Phase II program by Alfa Wassermann, a $10 million option fee payable to Theravance if it exercises its option following completion of the Phase II program, and potential development, regulatory and sales milestone payments of up to $53.5 million. Theravance is entitled to receive royalties on net sales by Alfa Wassermann ranging from the low teens to 20%.

Under the accord, the companies will collaborate in the execution of a two-part Phase II program to test the efficacy, safety and tolerability of velusetrag in the treatment of patients with gastroparesis, a serious, debilitating disorder of gastrointestinal motility with few therapeutic options currently available to patients. If the results of the studies are sufficiently favorable, Alfa Wassermann will have the right to exercise an exclusive option for the development and commercialization of velusetrag in the European Union, Russia, China, Mexico and certain other countries. Theravance retains full rights to velusetrag in the USA Canada, Japan and certain other countries.