Sobi pays $10 million to exercise opt-in right for Elocta

Nordic biotech firm Swedish Orphan Biovitrum (STO: SOBI) will exercise its opt-in right to take over final development and commercialization of Elocta (rFVIIIFc) for the territory composed of Europe, North Africa, Russia and most Middle Eastern markets.

Elocta/Eloctate is a recombinant factor VIII Fc fusion protein product candidate for the treatment of hemophilia A. Sobi will make a payment to partner Biogen Idec (Nasdaq: BIIB) of $10 million, which will be held in escrow pending the EU regulatory approval of Elocta. Upon EU approval of Elocta, Sobi will be liable to repay around half of the development and manufacturing costs for Elocta/Eloctate incurred by Biogen Idec to date (about $180 million), as well as for additional investments made until Sobi formally assumes responsibility as the Marketing Authorization Holder for Elocta. Sobi estimates the total repayment obligation to reach approximately $240 million.

Geoffrey McDonough, Sobi chief executive, said: “This is an important milestone for Sobi and the result of a strong collaboration between our two companies. Sobi's legacy in hemophilia and rare diseases provides a platform for making this innovative treatment available for people with hemophilia A in our territory.”