Destiny Pharma could be in line for $570 million thanks to a new co-development agreement with U.S.-based Sebela Pharmaceuticals for a Clostridium difficile treatment.
The two companies have agreed to work on NTCD-M3 together, with Sebela offering $1 million upfront, development milestones of $19 million and revenue-based milestones of up to $550 million, according to a Friday press release. Royalties are also included. Sebela will gain the North American rights to the treatment and lead and finance clinical development and commercialization activities in the region.
U.K.-based Destiny will retain rights in Europe and the rest of the world and will complete ongoing manufacturing of clinical trial supplies for an upcoming phase 3 study.
NTCD-M3 is Destiny’s lead asset under development to prevent C. difficile infection recurrence and was in-licensed in 2020. The therapy is an oral formulation of NTCD-M3 spores and protects the gut from the proliferation of toxic strains of C. difficile. A phase 3 study is expected to start in 2024, according to the release.
Destiny’s CEO Neil Clark said the deal is in line with the company’s strategy to find partner companies to take their lead assets into late-stage development and reduce funding requirements.
Meanwhile, Destiny used the opportunity to announce a fundraising of up to 8 million pounds sterling ($9.5 million) consisting of a placing, subscription and an open offer. The funds will help Destiny complete the required phase 3 work for NTCD-M3 as well as prep XF-73 Nasal for a phase 3 study. The treatment is being developed for preventing post-surgical staphylococcal hospital infections including MRSA.