Elevation Pharmaceuticals, which is developing several inhalation products, has agreed to be acquired by Sunovion. Both boards have approved the deal.
The agreement includes an upfront payment of $100 million and milestone payments for development of Elevation’s EP-101 glycopyrrolate inhalation solution that could total as much as $90 million. EP-101 is currently in Phase 2b trials for the treatment of COPD and is expected to begin Phase 3 trials by the end of 2013. If the product is approved, Sunovion will make additional commercial milestone payments of up to $210 million. Other development projects could add up to $30 million to the deal.
Sunovion Pharmaceuticals Vice Chair Hiroshi Nomura commented, “The acquisition of Elevation Pharmaceuticals will further strengthen and diversify our respiratory pipeline and portfolio and enable Sunovion to continue to meet the needs of people living with respiratory diseases and the healthcare providers who treat them.”
“EP-101 is currently the only LAMA in late stage development in nebulized form, providing a significant opportunity to address the needs of patients struggling with the control of their COPD using handheld inhalers. With our extensive expertise in successfully launching and commercializing nebulized respiratory treatments, we have the knowledge and infrastructure necessary to complete the development of this important medication,” Nomura added.
Elevation CEO Bill Gerhart said, “Nebulized medicine is an important treatment option for older and sicker patients — the fastest growing segment within COPD. Sunovion is the ideal sponsor to realize our original vision to significantly elevate the standard of care for this underserved patient population.”
Sunovion’s current OINDP products include Xopenex, Brovana, Omnaris, Zetonna, and Alvesco.
Read the Sunovion press release.
