Zogenix’ Acquisition of Modis Therapeutics Completes

Zogenix (NASDAQ:ZGNX) has announced its acquisition of Modis Therapeutics has completed and that it has added MT1621 to its late-stage development pipeline.

As quoted in the press release:

MT1621 is a novel investigational deoxynucleoside substrate enhancement therapy for the treatment of Thymidine Kinase 2 deficiency (TK2d), an inherited mitochondrial DNA depletion disorder that predominantly affects children and is often fatal.

“We welcome Modis to our growing Zogenix team,” said Stephen J. Farr, Ph.D., President and CEO of Zogenix. “With our strengthened portfolio, we are very excited to now be advancing two very promising potential new therapies to patients and families in need – FINTEPLA for Dravet and Lennox-Gastaut syndromes and MT1621 for TK2 deficiency.”

At closing, Zogenix paid Modis approximately $175 million in cash, funded in full via the Company’s existing balance sheet, and approximately $75 million in Zogenix common stock based on a 25-day volume weighted average price of $46.68 per share. Modis is also eligible to receive milestone payments consisting of $100 million upon U.S. Food and Drug Administration approval of MT1621 and $50 million upon European Medicines Agency approval of MT1621. Zogenix will also pay a 5% royalty on any future net sales of MT1621.

Click here to read the full press release.