Chiesi in-licenses Raxone in LHON from Santhera

Shares of Swiss drugmaker Santhera Pharmaceuticals (SIX: SANN) leapt 8.8% to 16.76 Swiss francs by early afternoon, after it revealed a lucrative licensing deal with privately held Italian firm Chiesi Farmaceutici.

Under the exclusive license agreement Chiesi Group will in-license Raxone (idebenone) for the treatment of Leber’s hereditary optic neuropathy (LHON) for a total consideration of up to 105 million francs ($104 million), comprising an upfront cash payment of 50 million francs and near- to mid-term sales milestone payments of up to 55 million francs.

Chiesi Group is in-licensing the rights to Raxone in LHON and all other ophthalmological indications worldwide except the USA and Canada, where Santhera retains rights. In a second step, following the completion of certain reimbursement and post-regulatory commitments on the part of Santhera, Chiesi Group has the option to fully acquire Santhera’s Raxone business. The transaction enables Santhera to focus on the business areas core to its long-term growth strategy by advancing its clinical-stage neuromuscular and pulmonary programs.