Bausch Health picks up IBD drug amiselimod rejected by Biogen

Bausch Health (NYSE: AHC) subsidiary Salix Pharmaceuticals has entered into an exclusive licensing agreement with Japan’s Mitsubishi Tanabe Pharma (TYO: 4508) to develop and commercialize MT-1303 (amiselimod), a late-stage oral compound that targets the sphingosine 1-phosphate (S1P) receptor that plays a role in autoimmune diseases, such as inflammatory bowel disease (IBD) and ulcerative colitis.

The drug was originally licensed to US biotech major Biogen (Nasdaq: BIIB), for an upfront of $60 million in 2015, but in 2016 the company discontinued development and subsequently returned amiselimod rights to Mitsubishi Tanabe Pharma (MTPC).

Under the agreement, MTPC grants Bausch Health exclusive rights to develop and commercialize MT-1303 worldwide, except for Japan and certain other countries in Asia, in all fields, excluding neurology, rheumatology and certain rare dermatology diseases, where MTPC retains the rights. Bausch plans to initiate development of MT-1303 in ulcerative colitis. Under the terms of the license, Bausch Health will pay to MTPC a one-time up-front payment, as well as certain development and regulatory-based milestone payments and sales-based royalties.