Quince up on deal to buy biotech EryDel SpA, its lead drug candidate

IRulya Therapeutics

24/07/2023 12:50

** Shares of biotech company Quince Therapeutics Inc
 QNCX.O  up 15.8% at $1.83 in premarket trading 
    ** Co to acquire privately held EryDel SpA and its genetic
disorder drug candidate in a stock-for-stock upfront exchange
and potential downstream milestone cash payments
    ** EryDel's lead asset, EryDex, is in late-stage development
for treating a rare fatal pediatric neurological disease 
    ** Once transaction is completed, EryDel stockholders will
own about 16.7% or 7,250,352 shares of the combined company and
will be entitled to up to $485 mln upon achieving certain
commercial milestones with no royalties 
    ** Deal is expected to close in Q3'23
    ** Transaction will include assumption of EryDel's $13-mln
(€10 million in principal) European Investment Bank loan with
scheduled payments beginning in H2 of 2026
    ** EryDel plans to enroll first patient in global late-stage
trial of EryDex in Q2'24 with NDA submission to U.S. FDA
targeted by end of 2025
    ** As of last close, QNCX stock up 147.9% this year

 (Reporting by Pratik Jain in Bengaluru)
 ((Pratik.Jain@thomsonreuters.com;))