Kidney disease drug developer Akebia Therapeutics ( NASDAQ: AKBA ) announced Wednesday that its subsidiary Keryx Biopharmaceuticals inked an agreement to grant an exclusive license to Averoa SAS to develop and sell ferric citrate in certain European markets and Turkey.
Per the terms, Akebia ( AKBA ) is entitled to receive tiered royalties ranging from a mid-single-digit percentage to a low double-digit percentage of annual sales of the licensed product marketed as Auryxia in the U.S. The deal also requires Akebia ( AKBA ) to supply the licensed product to Averoa for commercial use.
Additionally, the companies will form a joint steering committee to supervise the product's development, manufacturing, and commercialization in the region.
Concurrently, Akebia ( AKBA ) announced that Keryx and BioVectra Inc. agreed to terminate and settle agreements under which the latter was required to produce and supply ferric citrate drug substance for the company's anemia therapy Auryxia.
Per the termination agreement, Akebia ( AKBA ) is required to pay BioVectra $32.5M, including $17.5M upfront and six quarterly payments of $2.5M starting from April 2024.
Seeking Alpha contributor Fade The Market thinks that Akebia ( AKBA ) is heavily dependent on Auryxia, which is set to lose its exclusivity in 2025.
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Akebia out-licenses ferric citrate product; terminates BioVectra supply deal