Sanofi gets rights to Principia's Btk inhibitor for MS

Principia Biopharma Inc. (South San Francisco, Calif.) will grant Sanofi (Euronext:SAN; NYSE:SNY) exclusive, worldwide rights to develop and commercialize PRN2246, a Bruton's tyrosine kinase (Btk) inhibitor, to treat multiple sclerosis and other undisclosed CNS diseases.

Principia will receive $40 million upfront and is eligible for up to $765 million in milestones, plus royalties. The company also has an option to co-fund Phase III development in exchange for either increased royalties on worldwide sales or "a profit and loss sharing arrangement" in the U.S. Principia declined to disclose additional financial terms...