Genfit announced that it is Versantis for roughly $40 million cash and approximately $65 million in milestone payments and other considerations.
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GENFIT is acquiring liver-disease specialist Versantis for roughly $40 million cash and up to approximately $65 million in milestone payments and other considerations, the company announced Monday.
Genfit said the $40 million is due at the deal’s close, expected to occur by the year’s end. The Swiss-based Versantis’ primary research is in the development of treatments for acute-on-chronic liver failure (ACLF), and its primary drug candidate is VS-01, a liposomal-based molecule that clears toxic metabolites by capturing them in the abdominal cavity.
VS-01 recently completed Phase 1B clinical testing. The drug is injected into the abdominal cavity to capture the toxins and then drained from the body through a catheter.
A 60-patient, Phase II clinical trial is expected to launch by the end of the year.
An estimated 137,000 patients are hospitalized in the United States with ACLF, and there are no treatments for the ailment. ACLF occurs in patients with late-stage liver diseases and has a high, short-term mortality rate, depending on the patient’s condition.
ACLF is fueled by diabetes, alcoholism, aging and other incidents and is a growing problem in an aging population.
Genfit estimates a $4 billion annual cost in the U.S. and $2 billion in European markets for a successful drug candidate to treat ACLF.
VS-01 is also being tested for the treatment of pediatric urea cycle disorder (UCD). The FDA granted VS-01 orphan drug status to treat both ACLF and UCD. The FDA also designated VS-01 to treat UCD with a Rare Pediatric Diseases Designation (RPDD).
“After the acquisition, Genfit will have multiple promising programs in rare liver diseases,” Genfit CEO Pascal Prigent said during a conference call to announce the deal.
The publicly traded Genfit is also primarily focused on treating liver disease. Last week, the FDA granted orphan drug status to Genfit’s GNS561 drug candidate for cholangiocarcinoma, a rare liver malignancy with high mortality and limited treatment options. It occurs mainly in people over the age of 50.
GNS561 is a Palmitoyl Protein Thioesterase-1 (PPT-1) that blocks autophagy, which is activated in tumor cells in advanced cancers. The molecule recently completed a Phase Ib trial. Phase II is expected to begin by the end of the year, and the first patient will be treated by early next year, if all goes according to plan.
Shares of Genfit, Nasdaq ticker symbol GNFT, traded about 4% higher early Monday, at $4.28 per share.
