First Wave rises on global licensing deal with Sanofi for gastro disease treatment

GridAI Technologies

14/09/2023 12:10

** Shares of drug developer First Wave BioPharma  FWBI.O 
rise 91% to 83 cents premarket
    ** Co signs exclusive global license agreement with Sanofi
 SASY.PA  to develop capeserod in the treatment of
gastrointestinal (GI) diseases
    ** FWBI says it will initiate talks with the U.S. FDA for
the mid-stage trials to begin in 2024
    ** Capeserod belongs to a class of drugs known as selective
5-HT4 receptor partial agonist that helps movement of the
intestinal muscles to increase gastric emptying and decrease
esophageal reflux
    ** Sanofi eligible to receive potential payments of up to
$46 mln in development and regulatory milestone and up to $235
mln in commercial milestone 
    ** Also, will have a right of first refusal with respect to
capeserod out-licensing transactions
    ** Sanofi, previously, conducted seven early and two
mid-stage trials investigating the potential of capeserod for
neurological disorders
    ** Up to last close, stock down FWBI ~93% YTD

 (Reporting by Sriparna Roy in Bengaluru)
 ((Sriparna.Roy@thomsonreuters.com;))