Benzinga | May 18, 2021 06:43AM EDT

Concert Pharma Sells VX-561-Related Milestones To Vertex For $32M

* Concert Pharmaceuticals Inc (NASDAQ: CNCE) has sold potential future milestones relating to VX-561 (deutivacaftor) under the 2017 asset purchase agreement to Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) for $32 million.

* "This transaction provided an opportunity to secure non-dilutive capital and strengthens our balance sheet as we continue to advance CTP-543, our lead asset for alopecia areata, through its Phase 3 program," stated Roger Tung, President and CEO of Concert Pharmaceuticals.

* "By receiving these proceeds, we now expect our cash, cash equivalents, and investments to fund the Company into the second quarter of 2022."

* Under the asset purchase agreement, Vertex acquired worldwide development and commercialization rights to VX-561 for cystic fibrosis.

* In 2017, Concert received a one-time cash payment of $160 million on closing the asset purchase, with the potential for $90 million in future milestones.

* Following receipt of the $32 million, no further milestone obligations remain.

* Price Action: CNCE shares closed at $4.03, and VRTX shares closed at $216.35 on Monday.