Under the terms of the licensing agreement, Summit will receive an upfront payment of $7 million in the form of an equity investment in Summit shares, future development and regulatory milestones totaling $51 million, tiered royalties rising to the low teens, depending on sales and product sales milestones, giving a total deal value of up to $143 million.
Summit will be responsible for completing the preclinical development of SMT C1100. BioMarin will be responsible for the clinical development, regulatory filing and commercialization of the product candidate.
The equity investment of $7 million will be made at 69 pence per share, calculated from the 60-day trailing share price at the time issue, upon which BioMarin will hold approximately 9.16% of the enlarged share capital of Summit.
Jean-Jacques Bienaime, CEO of BioMarin, said: “We are pleased to work with Summit on the Duchenne muscular dystrophy (DMD) program. SMT C1100, an oral small molecule utrophin upregulator, has shown promise in animal models of DMD and may have the potential for treating the entire spectrum of DMD patients, not just those with a particular type of mutation.”