BHV Pharma, Islet Sciences deal

Islet Sciences and BHV Pharma will terminate a proposed merger to form Avogenx Inc. in favor of a licensing deal granting Islet exclusive rights to develop and commercialize BHV’s remogliflozin etabonate outside of Japan, Korea, Taiwan, China and Latin America. The sodium-glucose cotransporter 2 (SGLT2) inhibitor is in Phase IIb testing to treat Type II diabetes and non-alcoholic steatohepatitis (NASH).

BHV will receive $5 million up front and is eligible for $35.1 million in pre-approval milestones and $76.8 million in post-approval milestones, plus royalties. The license is contingent on Islet raising at least $10 million and paying BHV the upfront fee by May 31. BHV said there will not be a termination fee. Last March, Islet signed a letter of intent to acquire BHV in a stock deal (see BioCentury, March 17, 2014). ...