Zogenix to Acquire Modis Therapeutics for $250 Million to Advance Innovative Therapy for Rare Genetic Disorder TK2 Deficiency

On August 27, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that pharmaceutical company Zogenix announced the acquisition of biopharmaceutical company Modis Therapeutics (Modis) for $250 million.

Upon completion of this acquisition, Modis will receive a $250 million upfront payment, comprising $175 million in cash and $75 million in Zogenix common stock. Zogenix will also pay Modis a 5% royalty on future net sales of the candidate therapy MT1621 and continue to research innovative therapies for rare genetic diseases.

Modis, a biopharmaceutical company founded in 2016, is headquartered in California, USA, with an office in New York City. The company collaborates with leading experts in mitochondrial biology to research innovative therapies primarily for patients with rare genetic diseases, and develops and commercializes therapeutic drugs to improve patient outcomes.

MT1621 is an investigational deoxynucleoside substrate enhancement therapy for the treatment of advanced thymidine kinase 2 deficiency (TK2d). Preliminary clinical study data indicate that this therapy can effectively improve treatment outcomes in patients with TK2d. Modis plans to conduct additional clinical studies to obtain regulatory approval and make MT1621 available to patients worldwide.

TK2d is a fatal genetic disorder characterized by mitochondrial dysfunction, with symptoms primarily manifesting as muscle weakness, respiratory difficulties, and feeding impairments. There are approximately 2,500 patients with TK2d in the United States, predominantly infants and young children, and currently no approved therapies exist for this condition.

Joshua Grass, CEO of Modis, stated, “Building on the research achievements already made, we are confident that Zogenix will continue to collaborate with us in the development of the MT1621 therapy. Zogenix will accelerate the development and commercialization of MT1621, making the drug available to patients in need as soon as possible.”

Zogenix, founded in 2006 and headquartered in California, USA, is a global pharmaceutical company. The company is dedicated to developing and commercializing therapies for rare diseases to improve patient health outcomes. Zogenix is planning to resubmit its New Drug Application (NDA) for FINTEPLA to the U.S. Food and Drug Administration (FDA) for the treatment of seizures associated with Dravet syndrome. This condition predominantly affects infants and is characterized by frequent, prolonged seizures as well as intellectual and behavioral impairments. FINTEPLA is currently under review by the European Medicines Agency (EMA) and is being developed in Japan.

Dr. Stephen J. Farr, President and Chief Executive Officer of Zogenix, stated, “This acquisition will help Zogenix solidify its leadership position in the field of rare disease pharmaceuticals. Based on clinical data to date, we believe that MT1621 can significantly improve outcomes for patients with TK2d. MT1621 has received Breakthrough Therapy Designation from the FDA, and we will collaborate with regulatory authorities to discuss next steps for the clinical development program.”

(Compiled by Hu Yifan)