Benzinga | Jan 13, 2022 11:45AM EST

VYNE Therapeutics Divests Topical Minocycline Assets; Transaction Includes Cash Payments Of $25M And Potential Milestones Of Up To $450M

Transaction includes cash payments of $25 million and potential milestones of up to $450 million

Sale aligns with VYNE's strategic plan; proceeds will be used to fund development of Company's immuno-inflammatory pipeline

BRIDGEWATER, N.J., Jan. 13, 2022 (GLOBE NEWSWIRE) -- VYNE Therapeutics Inc. (NASDAQ:VYNE) ("VYNE" or the "Company") today announced that it has sold its Molecule Stabilizing Technology (MST(tm)) franchise, including AMZEEQ(r) (minocycline) topical foam, 4%, and ZILXI(r) (minocycline) topical foam, 1.5%, to Journey Medical Corporation (NASDAQ:DERM) ("Journey"). The sale, which also includes VYNE's pipeline combination product FCD105, aligns with VYNE's strategic plan to focus its resources on the development of its pipeline of proprietary, differentiated medicines for immuno-inflammatory conditions, including FMX114, in Phase 1b/2a, and the novel InhiBET(tm) platform of Bromodomain and Extra-terminal Domain (BET) inhibitors.

Pursuant to the terms of the definitive asset purchase agreement (the "Agreement"), which closed simultaneously with signing, Journey will pay VYNE an upfront payment of $20.0 million and will pay an additional $5.0 million on the one (1)-year anniversary of the closing. VYNE is also eligible to receive sales milestone payments of up to $450.0 million in the aggregate upon the achievement of specified levels of net sales of the products covered by the Agreement. In addition, VYNE is entitled to receive certain payments from any licensing or sublicensing of the assets by Journey outside of the United States.

"This transaction is a key component of our strategy to focus our future efforts and resources on the development of our immuno-inflammatory pipeline assets," said David Domzalski, CEO of VYNE. "We believe that Journey's growing dermatology portfolio and extensive commercial expertise provide significant opportunity for the topical minocycline franchise moving forward."

Mr. Domzalski continued, "2022 is poised to be a very important year for VYNE, driven by a pipeline of near-term inflection catalysts from FMX114 and the InhiBET(tm) platform. We expect to report Phase 1b/2a data from the FMX114 study in atopic dermatitis in the first quarter of 2022. In addition, we expect to file the first IND from the InhiBET(tm) platform, for VYN201, a topical pan-BD BET inhibitor, and enter the clinic in mid-2022. Further, we intend to select the first clinical candidate from the VYN202, oral BD2-selective BET inhibitor, program for major immuno-inflammatory conditions, in 2022. Cash proceeds from the Journey Agreement will help support VYNE's operations through the end of this year."

Further details related to the Agreement, the transaction and related matters will be contained in a Current Report on Form 8-K to be filed by the Company.

Guggenheim Securities, LLC served as financial advisor to VYNE in connection with the transaction.