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Takeda

Key Takeaway: Ovid and Takeda have restructured their collaboration on soticlestat, a CH24H inhibitor aimed at treating rare epileptic conditions. The new agreement allows Takeda to take over Ovid's 50% share in soticlestat, providing Ovid with an upfront payment of $196 million and potential future milestone payments. Takeda will handle all development and commercialization costs.
Price reaction · baseline $3.51 (2023-09-22T16:05:00.000Z) · hit during market hours · 29 other OVID headline(s) in the window, move may be shared
day 0 close · peak
+3.7%

Market Sentiment Analysis

POSITIVE FACTORS

  • Ovid received an upfront payment of $196 million.
  • Potential for up to $660 million in additional milestone payments.
  • Takeda assumes all responsibility for development and commercialization.

BiopharmaWatch Analysis

From our catalyst data and publicly available data · not financial advice
Best trade, last catalyst
+622%
120-day peak, hindsight
Typical move
2.4%
average across 3 past catalysts
Cash runway
~33 mo
Minimal dilution risk

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.
Read Ovid press release »
Read Takeda press release »

Frequently Asked Questions

What is soticlestat?

Soticlestat is a first-in-class CH24H inhibitor aimed at reducing seizure susceptibility.

What was the original agreement between Takeda and Ovid?

The original agreement allowed Ovid to co-develop and co-commercialize soticlestat.

What are the financial terms of the new agreement?

Ovid received $196 million upfront and can earn up to $660 million in milestones.

Who is responsible for soticlestat's development now?

Takeda has assumed all responsibilities and costs for the development and commercialization.

Last updated: Sep 22, 2023