Sunovion to Buy Company in Deal Worth $430 Million
Sunovion Pharmaceuticals Inc. recently announced it has signed a definitive agreement to acquire Elevation Pharmaceuticals, Inc. The acquisition includes Elevation Pharmaceuticals’ EP-101 product, an inhalation solution of a long-acting muscarinic antagonist (LAMA) bronchodilator that is in Phase IIb clinical trials for the treatment of patients with moderate-to-severe chronic obstructive pulmonary disease (COPD).
According to the terms of the agreement, Sunovion will make an up-front payment of $100 million to the shareholders of Elevation on closing of the acquisition of its shares, and thereafter it will make development milestone payments for EP-101 up to $90 million. Furthermore, after the regulatory approval, Sunovion will also make commercial milestone payments up to $210 million. Subsequent milestone payments up to $30 million could occur contingent upon the successive development of additional new programs.
“The acquisition of Elevation Pharmaceuticals will further strengthen and diversify our respiratory pipeline and portfolio, and enable Sunovion to continue to meet the needs of people living with respiratory diseases and the healthcare providers who treat them,” said Hiroshi Nomura, Vice Chair of Sunovion Pharmaceuticals Inc.
“Nebulized medicine is an important treatment option for older and sicker patients – the fastest growing segment within COPD,” added Bill Gerhart, Founder and CEO of Elevation Pharmaceuticals. “Sunovion is the ideal sponsor to realize our original vision to significantly elevate the standard of care for this underserved patient population.”
EP-101 is a proprietary solution formulation of glycopyrrolate, delivered by a customized eFlow Nebulizer System (originated by and licensed from PARI Pharma GmbH), which was developed to optimize medication delivery and allow ease of use. Daily administration of inhaled bronchodilators (including LABAs and LAMAs) and corticosteroids are the main therapeutic options for managing the symptoms of COPD. EP-101 was designed for patients who are not well controlled on current standard of care or who prefer a nebulizer. The novel delivery system was designed to offer two potential key features for patients: reduced time for administration for patients (<2 mins vs. 5-10 mins for standard jet nebulizer) and a more portable size with a reduced noise level than most current nebulizer devices.
Two Phase II studies have been conducted, and an additional Phase II study will be conducted this year on EP-101 to evaluate its efficacy and safety in patients with moderate-to-severe COPD. Phase III trials are expected to initiate in the second half of 2013.
“EP-101 is currently the only LAMA in late-stage development in nebulized form, providing a significant opportunity to address the needs of patients struggling with the control of their COPD using handheld inhalers,” said Mr. Nomura. “With our extensive expertise in successfully launching and commercializing nebulized respiratory treatments, we have the knowledge and infrastructure necessary to complete the development of this important medication.”
Sunovion is a leading pharmaceutical company dedicated to discovering, developing, and commercializing therapeutic products that advance the science of medicine in the central nervous system (CNS) and respiratory disease areas and improve the lives of patients and their families. Sunovion’s drug development program, together with its corporate development and licensing efforts, has yielded a significant portfolio of pharmaceutical products. For more information, visit www.sunovion.com.
Elevation Pharmaceuticals, Inc., a private biopharmaceutical company, was founded to develop new aerosol therapies for patients with respiratory diseases. The company focused on developing novel therapies that addressed unmet medical needs for patients with COPD who were not able to effectively control their disease with dry powder or metered dose inhalers.
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