Biotech Values

[DewDiligence]

FOLD acquires (private) Scioderm for $229M up-front (in cash+stock) and $618M in contingent payments:

http://www.xconomy.com/new-york/2015/08/31/with-229m-deal-amicus-gets-a-new-drug-and-maybe-a-voucher/

Amicus (NASDAQ: FOLD) this morning is announcing the acquisition of Durham, NC-based Scioderm. The deal could be worth close to $1 billion in total payments if the privately held Scioderm’s drug, SD-005, a cream for a rare, debilitating skin disease called epidermolysis bullosa, hits a variety of regulatory and sales milestones.

Amicus will pay Scioderm $229 million up front for the company: $125 million in cash, and $104 million via 7 million Amicus shares. Scioderm’s shareholders, who include venture investors such as Morganthaler Partners and Technology Partners, could get another $618 million in cash or Amicus stock if Scioderm’s drug hits certain clinical, regulatory, and sales milestones. Amicus will choose whether those payouts are in cash or stock, according to CEO John Crowley.

SD-005 is currently in Phase 3 testing, and results are expected in the first half of 2016.

…There’s a third part to this deal as well, what’s known as a priority review voucher… Scioderm will get a voucher if SD-005 is approved for epidermolysis bullosa; that voucher would now go to Amicus.