Full Press Release Details
In January 2017, Takeda and Ovid entered into a License and Collaboration agreement (the “Original Agreement”) for the development and commercialization collaboration of soticlestat. Soticlestat is believed to be a highly selective first-in-class CH24H inhibitor with the potential to reduce seizure susceptibility and improve seizure control in rare developmental and epileptic encephalopathies (DEE).
In March 2, 2021, Ovid entered into a Royalty, License and Termination Agreement (the “New Agreement”) with Takeda relating to the Original Agreement.
Under the Original Agreement, Ovid acquired a 50% share in soticlestat through an exclusive license and co-development and co-commercialization collaboration with Takeda. Under the terms of the New Agreement, the Original Agreement terminated by mutual agreement, and Takeda secured rights to Ovid’s 50% global share in soticlestat, in exchange for an upfront payment, development and commercial milestone payments, and royalties. Takeda also assumed all responsibility for, and the costs of, both development and commercialization of soticlestat.
At closing, Ovid received an upfront payment of $196.0 million and is eligible to receive up to an additional $660.0 million in development, regulatory and sales milestones. In addition, if soticlestat achieves regulatory approval, we will receive tiered royalties on net sales of soticlestat at percentages ranging from the low double-digits up to 20 percent, subject to standard reductions in certain circumstances.
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