Modis deal bolsters Zogenix’s late-stage, rare disease pipeline

With its acquisition of Modis, Zogenix will need to blaze a regulatory trail for Modis’ thymidine kinase 2 deficiency program while still pushing its own Dravet syndrome therapy through regulatory approval.

Zogenix Inc. (NASDAQ:ZGNX) said Monday it will acquire rare mitochondrial disease company Modis Therapeutics Inc. (Oakland, Calif.) for $250 million, comprising $175 million in cash and $75 million in stock, plus a potential $100 million and $50 million in milestone payments tied to U.S. and EU approval of MT1621, respectively, and 5% royalties...