Newly-formed Arvelle Therapeutics gets rights to cenobamate in Europe

Axovant Sciences (Nasdaq: AXGT), a clinical-stage company developing innovative gene therapies, today announced the formation of Arvelle Therapeutics and the strategic transition of its legacy small molecule team into the newly-formed company.

Based in Switzerland, Arvelle has licensed European rights to cenobamate, a novel investigational anti-epileptic drug for the potential treatment of focal (partial-onset) seizures, from South Korea-based SK Biopharmaceuticals. Axovant will receive a 5% preferred equity stake in Arvelle following the completion of the planned initial capital raise of over $100 million from a global syndicate of biotechnology investors.

Under the agreement, SK Biopharmaceuticals will receive an upfront payment of $100 million and is eligible to receive up to $430 million on the achievement of certain regulatory and commercial milestones in addition to royalties on net sales generated in Europe. SK Biopharmaceuticals will have an option to obtain a significant equity stake in Arvelle and will also retain commercial rights for all non-European territories.