RYTM - Rhythm Pharma acquires rare disease company Xinvento

• Rhythm Pharmaceuticals ( NASDAQ: RYTM ) announced Monday that its subsidiary, Rhythm Pharmaceuticals Netherlands B.V. acquired Xinvento B.V., a Dutch biotech focused on developing treatments for the rare genetic disease congenital hyperinsulinism (CHI).
• Per the terms, Rhythm B.V. will acquire 100% of Xinvento’s fully diluted equity for $5M upfront. That is in addition to milestone payments worth up to $5M for pre-clinical development and up to $60M for U.S. or EU regulatory approvals.
• Rhythm B.V. will also pay up to $150M as commercial net sales milestones linked to Xinvento’s lead candidate or a second molecule if the latter was selected, developed, and approved.
• Xinvento’s founder and Chief Executive, Claudine van der Sande, is expected to join Rhythm ( RYTM ) as Vice President, Head of the CHI program after the close of the transaction.
• In December, Seeking Alpha contributor Avisol Capital Partners reaffirmed its Hold rating on Rhythm ( RYTM ), citing the latter's potential as a long-term investment.

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