Ovid Therapeutics Inc (NASDAQ: OVID) has entered into an exclusive license agreement with AstraZeneca plc (NASDAQ: AZN) for a library of early-stage small molecules targeting the KCC2 transporter, including a lead candidate, OV350.
- The Company seeks to optimize and accelerate the development of these KCC2 transporter activators in epilepsies and potentially other neuropathic conditions.
- Under the agreement terms, AstraZeneca will receive an upfront payment of $5 million in cash and $7.5 million in shares of Ovid common stock.
- AstraZeneca is eligible to receive potential clinical development milestones of up to $8 million and regulatory milestones of up to $45 million.
- Total commercial milestones could reach $150 million, and tiered royalty payments range from the single digits up to 10% on net sales.
- AstraZeneca will have the right of the first negotiation to opt-in on a strategic collaboration at the time of proof of clinical efficacy.
- OV350 is an early-stage compound that has shown encouraging in-vitro and in-vivo proof of concept in resistant forms of epilepsy.
- The Company is also developing OV329, next-generation pregabalin for tuberous sclerosis and infantile spasms, which is expected to enter the clinic in 2022.
- OV350 is a small molecule that directly activates the KCC2 transporter, essential to seizure control.
- Price Action: OVID shares are down 0.31% at $3.21 during the premarket session on the last check Monday.
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