Vertex to acquire rights to cystic fibrosis candidate CTP-656

Vertex Pharmaceuticals (Nasdaq: VRTX) has acquired CTP-656 (deuterated ivacaftor), a next-generation CFTR potentiator being developed for the treatment of cystic fibrosis, from Concert Pharmaceuticals (Nasdaq: CNCE), with news of the deal sending the latter’ share soaring 34.7% to $13.00 in pre-market trading today.

As part of the agreement, Vertex will pay Concert $160 million in cash for all worldwide development and commercialization rights to CTP-656. If CTP-656 is approved as part of a combination regimen to treat CF, Concert could receive up to an additional $90 million in milestones based on regulatory approval in the USA and reimbursement in the UK, Germany or France.

The agreement is subject to approval by Concert’s shareholders and the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. Concert’s board of directors unanimously support the transaction and recommend that Concert’s shareholders vote in favor of it.