Active Stocks: Aevi Genomic Medicine, Inc. [NASDAQ: GNMX] announced that it now has the right to exercise a global license for MEDI2338. It intends to develop this drug for AOSD. This is a rare and orphan rheumatological disease, and has no cure. The company also intends to use the anti-IL-18 antibody to treat other rare auto-inflammatory disorders too. Through this global license, Aevi will be in a position to commercialize MEDI2338, and will pay both cash and stock, to exercise the option. It is expected to pay around $162 million once it exercises this option, and achieves certain sales and development milestones.
The company will have exclusive rights on licenses, patents and expects to create a new biological product exclusively for 12 years. This will start on the date that the FDA will approve of the anti-IL-18 antibody in the U.S. It will also have exclusive rights for 10 years, from the date when it will be authorized in the European market. According to the company’s Chief Scientific Officer, Garry Neil, AOSD is a rare and life-changing disease that causes joint pains, fever, and also triggers liver, renal and cardiopulmonary complications. He also stated that patients have very few options to treat the condition. This makes MEDI12338 central to the treatment of this disease.
This news was a big boost for Aevi in Wednesday’s trading session. It gained by 44.88% to close the day at $0.235, after trading between $0.186 and $0.326 all through the day. At the close of yesterday’s session, the stock had a market cap of about $15.468 million. The stock is trading in pre-market trading at the time of writing.
Aevi Genomic Medicine, Inc. is a company that is fully dedicated to genomic medicine, and is committed to developing new therapies in this space. The company even works with the Center for Applied Genomics, in order to push genomic medicine forward. The MEDI2338 deal is the second one under a month. In July, the company entered into a licensing agreement with Astellas to develop a 2nd generation Mtorc1/2 Inhibitor. Under the deal, Aevi will seek to treat congenital Lymphatic Malformations. These are life-threatening diseases that are evident at birth, or in the first two years of life. This points to a company that has a strategic commitment to the treatment of Genomic diseases.