Alexion, Stealth Agree on Option for Elamipretide for Mitochondrial Diseases

By Michael Dabaie

Alexion Pharmaceuticals Inc. (ALXN) and Stealth BioTherapeutics Corp. (MITO) agreed for an option to co-develop and commercialize elamipretide for mitochondrial diseases.

ADRs of Stealth were up 28% to $8.20 premarket.

Elamipretide is currently being evaluated in a Phase 3 study in people with primary mitochondrial myopathy, a genetic mitochondrial disease.

Under the terms of the agreement, Alexion can exercise the option following results from the Phase 3 study currently underway.

If Alexion chooses to exercise the option, the companies will co-develop subcutaneous elamipretide in the U.S. Upon commercialization, the agreement would provide for a 50-50 co-promote between the two companies in the U.S. and Alexion would receive exclusive rights to develop and commercialize subcutaneous elamipretide outside the U.S.

Alexion will make initial payments to Stealth totaling $30 million, including an option fee, an equity investment and development funding.

Write to Michael Dabaie at michael.dabaie@wsj.com

(END) Dow Jones Newswires

October 10, 2019 08:23 ET (12:23 GMT)

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