Poxel S.A. licenses US and EU rights to imeglimin a drug to treat type 2 diabetes to Roivant Sciences.

Roivant Sciences, a global healthcare company focused on realizing the full value of promising biomedical research, and Poxel SA a biopharmaceutical company focused on the development of innovative treatments for metabolic disorders including type 2 diabetes, announced the signing of a strategic development and license agreement for imeglimin, an investigational oral therapy which has been developed by Poxel for the potential treatment of type 2 diabetes, in the U.S., Europe, and all other countries not covered by Poxel�s existing agreement in East and Southeast Asia.

This partnership enables Roivant to add an innovative late-stage development program to its pipeline and Poxel gains a strategic development and licensing agreement for imeglimin beyond the company�s partnership with Sumitomo Dainippon Pharma. Under the terms of the agreement, Poxel is entitled to receive an upfront payment of $35 million (approximately �28 million) and Roivant will invest $15 million (approximately �12 million) in Poxel through a subscription to 1,431,399 newly-issued ordinary shares at �8.5 per share. Poxel is entitled to receive potential future development and regulatory milestone payments and sales-based payments of up to $600 million (approximately �486 million) subject to the successful clinical development and commercialization of imeglimin. Furthermore, after launch Poxel will be entitled to double-digit royalties on net sales. Roivant will be responsible for development and commercialization costs and Poxel will contribute $25 million (approximately �20 million) to the development program. The parties will decide on a potential co-promotion prior to commercialization.

Comment: Imeglimin is currently in Phase III studies being conducted in Japan by partner Sumitomo Dainippon which holds licence for the Asian rights to the drug. Roivant plans to move the drug into a U.S. and European phase III program next year.