Evgen inks SFX-01 licensing deal for up to $160.5 million

UK clinical stage drug development company Evgen Pharma (AIM: EVG) saw its shares rocket more than 66% to 4.63 pence this morning, after it revealed the signing of global license for lead asset SFX-01 in neurodevelopmental disorders and schizophrenia to Stalicla.

Stalicla is a Swiss company specializing in the identification of specific phenotypes of autism spectrum disorder (ASD), using its proprietary precision medicine platform. Liverpool-headquartered Evgen retains the global rights for all other indications.

Under the terms of the accord, Evgen will receive $0.5 million upfront, $0.5 million on completion of the already fully financed, Evgen-sponsored human volunteer Phase I study (anticipated during second-quarter 2023). Milestone payments up to commercial launch are $26.5 million, including $5 million on grant of an investigational new drug (IND) by the US Food and Drug Administration (FDA), which is anticipated in late 2023. Total milestones of $160.5 million are payable to the company in relation to the first neurodevelopmental disorder indication under the license. Royalties payable to Evgen on sales are in the low to medium double-digit range in all scenarios, including on-licensing by Stalicla and use of SFX-01 in further licensed indications.