Geneva biopharma ObsEva sells its Ebopiprant license for up to USD 113 millionWednesday 23 November 2022
Founded in Geneva in 2012, ObsEva is clinical-stage biopharmaceutical with the aim to usher in a new era in women’s reproductive health. | © Pixabay
Women’s and reproductive health specialist ObsEva has announced the sale of its license for ebopiprant to California-based biotech company Xoma for up to USD 113 million.
ObsEva is a biopharmaceutical company developing and commercializing novel therapies to improve women’s reproductive health and pregnancy. The company candidate, ebopiprant, is an investigational, orally active, selective prostaglandin receptor antagonist being evaluated as a potential treatment for preterm labor by reducing inflammation and uterine contractions.
Through strategic in-licensing and disciplined drug development, ObsEva has established a late-stage clinical pipeline with development programs focused on new therapies for the treatment of uterine fibroids, endometriosis, and preterm labor. The Geneva-based company has recently announced the sale of all of the company’s rights to Ebopiprant to XOMA Corporation.
“The sale of the Ebopiprant license agreement both strengthens our immediate financial position, while providing the potential for future upside for shareholders,” said Brian O’Callaghan, CEO of ObsEva. “The transaction marks the successful completion of a restructuring process whereby we have extracted material savings through the assignment of contracts, streamlined our organizational structure, and restructured our debt. With the receipt of the upfront payment, we expect to have more than a year of cash runway and an enhanced strategic position, and we intend to turn the company’s resources towards nolasiban, a novel, oral oxytocin receptor antagonist being developed to improve clinical pregnancy and live birth rates in women undergoing in vitro fertilization, while also evaluating strategic options to maximize shareholder value. ObsEva retains worldwide, exclusive, commercial rights for nolasiban, except for the People’s Republic of China.”
In addition to the USD 15 million received in upfront proceeds, ObsEva is eligible to receive up to USD 98 million upon the achievement of certain development and regulatory milestones and sales milestones under the company’s license agreement with Organon for Ebopiprant that was sold to XOMA in the transaction. In July 2021, ObsEva granted a license to Organon for the global development, manufacturing, and commercial rights to Ebopiprant.