Benzinga | Mar 3, 2021 09:37AM EST

Ovid Shares Rally On Soticlestat Development Pact With Takeda In Rare Epilepsy Syndromes

Takeda Pharmaceutical Co Ltd (NYSSE: TAK) has agreed to secure global rights from Ovid Therapeutics Inc (NASDAQ: OVID) for soticlestat (TAK-935/OV935) for the treatment of developmental and epileptic encephalopathies, including Dravet syndrome (DS) and Lennox-Gastaut syndrome (LGS).

* Under this new agreement, Takeda will develop and commercialize soticlestat globally, and Ovid will no longer have any financial obligation to Takeda under the original collaboration agreement announced in 2017.

* Ovid will receive an upfront payment of $196 million and is eligible to receive up to an additional milestone payment of $660 million.

* Also, Ovid will receive tiered royalties beginning in the low double-digits and up to 20% on sales of soticlestat.

* Data from the Phase 2 ELEKTRA study showed that soticlestat met its primary endpoint of reducing seizure frequency in pediatric patients with DS or LGS.

* Takeda plans to start Phase 3 studies of soticlestat in children and young adults with DS and LGS in Q2 2021.

* Soticlestat is an inhibitor of the enzyme cholesterol 24-hydroxylase (CH24H), with the potential to reduce seizure susceptibility and improve seizure control.

* CH24H is expressed in the brain, where it converts cholesterol into 24S-hydroxycholesterol (24HC) to adjust the homeostatic balance of brain cholesterol.

* Ovid will hold a conference call and webcast today at 8:30 a.m. EST.

* Price Action: OVID shares are trading higher by 48% at $4.37on the last check Wednesday.