Sarepta +13% premarket on SRP-9001 deal with Roche outside U.S.

Sarepta Therapeutics (NASDAQ:SRPT) is up 13% premarket on entering into a licensing agreement with Roche (OTCQX:RHHBY), providing latter an exclusive commercial rights to SRP-9001, an investigational gene therapy for Duchenne muscular dystrophy (DMD), outside the U.S.

Under the agreement, Sarepta will receive $1.15B in an upfront payment and an equity investment; up to $1.7B in regulatory and sales milestones; and royalties on net sales in the mid-teens.

As part of the agreement, Sarepta will remain responsible for manufacturing of clinical and commercial supplies. Roche is also granted an option to acquire ex-U.S. rights to certain future DMD-specific programs, in exchange for separate milestone and royalty considerations, and cost sharing.

Both the companies will equally share global development expenses. SRPT retains all rights to SRP-9001 in the U.S.

The agreement is expected to close in Q1 2020.

https://seekingalpha.com/news/3528061-sareptaplus-13-premarket-on-srpminus-9001-deal-roche-outside-u-s