Sarepta Shares Gain After Licensing Deal With Roche

By Chris Wack

Sarepta Therapeutics Inc. (SRPT) shares rose 13% to $142.50 in premarket trade Monday after the company said it entered a licensing agreement to provide Roche (RO.EB) with exclusive commercial rights to SRP-9001, Sarepta's investigational gene therapy for Duchenne muscular dystrophy, outside the U.S.

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

Roche and Sarepta will equally share global development expenses. Sarepta retains all rights to SRP-9001 in the U.S.

As part of the agreement, Sarepta will continue to be responsible for the global development plan and manufacturing buildout for SRP-9001. Sarepta has also granted Roche 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.

Write to Chris Wack at [e-mail]

(END) Dow Jones Newswires

December 23, 2019 07:33 ET (12:33 GMT)

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