OVID - Ovid shares surge 92% after soticlestat deal with Takeda

Takeda Pharmaceutical (TAK) inks agreement with Ovid Therapeutics (OVID) to secure global rights from Ovid to develop and commercialize soticlestat (TAK-935/OV935) for the treatment of developmental and epileptic encephalopathies, including Dravet syndrome ((DS)) and Lennox-Gastaut syndrome ((LGS)). Under new agreement, Takeda will assume sole responsibility for further worldwide development and Ovid will no longer have any financial obligation to Takeda under original deal.Ovid will receive an upfront payment of $196M at closing; up to an additional $660M in milestone payments and tiered royalties of low double-digits up to 20% on soticlestat sales.The new agreement is expected to close end of this month. Under the 2017 collaboration agreement, Takeda received equity in Ovid and was eligible to receive up to $85M in milestone payments. Ovid Therapeutics will host a conference call today at 8:30 am ET.OVID shares are higher 92% and TAK is up 2% premarket.

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Ovid shares surge 92% after soticlestat deal with Takeda