Aevi Genomic Medicine GNMX Stock News

Aevi Genomic Medicine Inc (NASDAQ: GNMX) is making its way for the top in the market this morning, trading on gains of more than 14%. The gains come after the company said that it has entered into a license agreement with AstraZeneca (NYSE: AZN). Here’s what’s going on:

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GNMX Stock Is Climbing On AZN Agreement

Aevi Genomic Medicine issued a press release early this morning, announcing that it has entered into a new license agreement with AstraZeneca. According to the release, the company has obtained the right to eercise an exclusive global license for MED12338.

MED12338 is a Phase 2-ready treatment designed to target interleukin 18, also known as IL-18. GNMX said that it plans on developing the treatment initially for adult onset Still’s disease. This is a serious rare and orphan rheumatological disease with no currently approved therapies int he United States.

In the future, the company intends on developing the treatment as a potential treatment for a variety of rare autoinflammatory disorders that are driven by IL-18.

According to the terms of the agreement, GNMX will have the right to exercise an exclusive global license to develop and commercialize MED12338. In exchange the company will pay a combined mid-single digit millions in cash and equity upon the exercise of the option.

Aevi Genomic Medicine has also agreed to pay up to $162 million in various development and sales related milestones as well as low-double-digit tiered royalties.

However, GNMX said that exercising this option is contingent on its ability to secure additional funding. Once exercised, the company will be fully responsible for development and commercialization of the drug.

In a statement, Garry Neil, M.D., CSO at GNMX, had the following to offer:

We are very excited to license this program from AstraZeneca and look forward to advancing this potential rare disease therapy into clinical development. AOSD is a rare, life-altering inflammatory disease characterized by fevers, rash and joint pain and striking elevation of IL-18. Many patients also suffer liver, cardiopulmonary and renal complications. Patients have limited available therapeutic options. Because IL-18 appears to play a central role in the disease, we believe that MEDI2338 could prove to be an effective treatment for these patients. A clear mechanism of action and safety profile have already been established in patients.

This News Is HUGE!

At the end of the day, the news that was released by Aevi Genomic Medicine is overwhelmingly positive. Should the company exercise the option to exclusively license this candidate, it will have a mid-stage-ready candidate for multiple rare and orphan diseases.

These types of diseases tend to be fast tracked with the FDA, leading to quick turnaround on potential approvals as well as extended exclusivity periods. So, should the additional funding be secured and the asset be acquired, the company will have the potential to bring the drug to market relatively quickly when compared to treatment options for non-rare and orphan drug candidates.

All in all, there’s a good reason that investors are excited here.

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