OVATION Pharma in-licenses GTC Bio's ATryn in a deal valued at up to $257M

OVATION Pharmaceuticals has entered into a definitive agreement for an exclusive collaboration with fellow USA-based GTC Biotherapeutics to develop and market the latter's ATryn (antithrombin alfa) in the USA. The firm will obtain the exclusive license to the US rights to the product and will own certain assets, including the Biologics License Application following approval.

The accord includes $257.0 million in potential payments to GTC for meeting clinical, regulatory and sales milestones with the blood-clotting disorder therapy, news of which sent the company's share price skyrocketing 41% to $0.39 on June 23.

The collaboration involves development and commercialization of ATryn in the hereditary antithrombin deficiency, or HD, indication. The milestones comprise a total of $9.0 million through approval of ATryn for HD in the USA, including $3.0 million paid upon closing and an additional $2.0 million expected to be received during this year. The collaboration also plans for further development in the larger market of acquired antithrombin deficiencies such as the treatment of heparin resistance in patients undergoing surgery requiring cardiopulmonary bypass and the treatment of disseminated intravascular coagulation associated with severe sepsis.