Alexion teams up with Stealth Bio to advance elamipretide

Alexion Pharmaceuticals (NASDAQ:ALXN) inks an agreement with Stealth BioTherapeutics (NASDAQ:MITO) securing an option to co-develop and commercialize elamipretide for mitochondrial diseases.

Elamipretide, an inner mitochondrial membrane-targeting therapeutic, is currently in Phase 3 development for an inherited disorder called primary mitochondrial myopathy (PMM) characterized by skeletal muscle weakness, chronic fatigue and exercise intolerance. Alexion will have an opportunity to exercise its option based on results from this study.

Under the terms of the agreement, if Alexion exercises its option, the parties will co-develop elamipretide in the U.S. for PMM, Barth syndrome (enlarged & weakened heart) and Leber hereditary optic neuropathy (inherited vision loss). If approved, the companies will co-promote on an equal basis in the U.S. Alexion will have exclusive development and commercialization rights ex-U.S.

Alexion will pay Stealth $30M upfront, including an option fee, an equity investment and development funding. If it exercises its option, it will make additional payments, including an option exercise fee, an additional equity investment, development funding and milestones.

Stealth will host a conference call this morning at 8:30 am ET to discuss the deal.

https://seekingalpha.com/news/3504950-alexion-teams-stealth-bio-advance-elamipretide