(RTTNews) - British intellectual property investor IP Group Plc (IPO.L) announced Tuesday that its portfolio company Autifony Therapeutics Ltd has entered into an exclusive global licensing agreement with Jazz Pharmaceuticals plc (JAZZ).
Through the agreement, Autifony, which is developing treatments for rare CNS disorders and other serious brain diseases, will discover and develop drug candidates targeting two different ion channel targets associated with neurological disorders.
Under the deal terms, Autifony will receive an upfront payment from Jazz and is eligible to receive development, regulatory and commercial milestone payments across the two programmes. The upfront and milestone payments have a combined total value of up to $770 million.
Autifony is also eligible to receive tiered royalties on future net sales.
As per the deal, Autifony will lead drug discovery and preclinical development activities on the two targets. Subsequent to successful completion of such preclinical development, Jazz will lead all clinical development, manufacturing and regulatory activities and commercialisation.
IP Group, which has a beneficial holding in Autifony of 26.3 percent, valued at 4.6 million pounds, currently anticipate a fair value gain of around 5 million pounds.
In London, IP Group shares were trading at 47.04 pence, up 2.94 percent.
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