As per the agreement, Healx intends to investigate the compound as part of a potential combination therapy for Fragile X syndrome and treatment for other indications.
Fragile X syndrome impacts around 1 in 4,000 males and 1 in 8,000 females. It creates a range of developmental problems including cognitive impairment, and behavioural problems.
Earlier, gaboxadol has been tested as a monotherapy for Fragile X syndrome in a Phase 2a clinical trial by Ovid.
Now, Healx intends to find an optimal treatment for the syndrome by combining gaboxadol and other compounds.
These compounds include HLX-0201 that has been identified by its AI platform Healnet.
In addition to the initial focus on Fragile X syndrome, Healx intends to use its indication expansion technology to identify other conditions that could also be treated by gaboxadol.
Ovid Therapeutics chairman and CEO Jeremy Levin said: “Gaboxadol shows encouraging activity and a good safety profile in a range of conditions. We are keen to see its clinical value unlocked.
“We’re impressed by the capabilities that Healx has developed and are optimistic that they can unlock effective drug combinations that will take advantage of the unique mechanism that underlies the effects we see when patients take gaboxadol.”
HealxHealx co-founder and CEO Dr. Tim Guilliams said: “This agreement represents an exciting opportunity for Healx to advance more potential treatments for rare conditions towards the clinic, and, hopefully, deliver them to patients in need.
“We are excited to be deploying our innovative combination and indication expansion methods to identify new therapeutic opportunities for compounds like gaboxadol.”
If Healx exercises its option, Ovid will get milestone payments for particular clinical, regulatory, and commercial achievements related to gaboxadol’s development.
Furthermore, Healx will pay tiered royalties to Ovid on net sales related to marketed therapies containing gaboxadol.
Ovid will have the option to become Healx’s co-development and co-commercialisation partner and share net profits and losses in lieu of milestones and royalty payments.
Ovid, however, does not intend to carry out further trials with gaboxadol.