Stealth BioTherapeutics Up 14%; In Agreement With Alexion

By Michael Dabaie

Stealth BioTherapeutics Corp. (MITO) ADRs were up 14% at $7.30 around midday.

Earlier Thursday, Stealth and Alexion Pharmaceuticals Inc. (ALXN) agreed on an option to co-develop and commercialize elamipretide for mitochondrial diseases.

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

Under the terms of the agreement, Alexion can exercise the option following results from the Phase 3 study currently under way. If Alexion chooses to exercise this option, the companies will co-develop subcutaneous elamipretide in the U.S. Upon commercialization, the agreement would provide for 50-50 co-promotion 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 shares were up 2% at $96.95.

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

(END) Dow Jones Newswires

October 10, 2019 12:07 ET (16:07 GMT)

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