Ovid Therapeutics (NASDAQ:OVID) stock is soaring higher on Wednesday after announcing a massive deal with Takeda Pharmaceutical (OTCMKTS:TKPHF).
Ovid Therapeutics announced that it has signed an exclusive rights deal with Takeda. This will give Takeda complete global rights for the development and commercialization of soticlestat for use in treating developmental and epileptic encephalopathies.
Ovid Therapeutics notes that this deal includes an upfront payment of $196 million from Takeda. It also covers milestone and royalty payments on sales of the drug. In total, the company could make as much as $856 million from this agreement.
The agreement today brings an end to the original collaboration between the two companies. It also has Takeda taking over the complete development of soticlestat. To go along with that, OVID no longer has any financial commitments to Takeda.
Jeremy Levin, chairman and CEO of OVID, said this about the news boosting the company’s stock up today.
“This new agreement is a positive outcome for patients, for Ovid and for Takeda. Jointly, we have set the stage, optimized the program and enabled it to accelerate. Ovid may benefit significantly, but without the obligation to commit the substantial capital needed over the coming years as soticlestat completes pivotal trials and, if successful, enters the global market.”
Takeda is preparing for a phase 3 clinical trial of soticlestat in children and adults with Dravet syndrome and Lennox-Gastaut syndrome. That trial is scheduled to begin in the second quarter of 2021.
OVID stock was up 37% as of Wednesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
