Ropes & Gray Guides Sarepta Therapeutics in $584 Million Agreement with Summit Therapeutics Pipeline for Duchenne Muscular Dystrophy

Ropes & Gray advised Sarepta Therapeutics on its exclusive license and collaboration agreement with Summit Therapeutics plc granting Sarepta rights in Europe, as well as in Turkey and the Commonwealth of Independent States, to Summit's utrophin modulator pipeline, including its lead clinical candidate, ezutromid, for the treatment of genetic disease Duchenne muscular dystrophy (DMD). As part of the agreement, Sarepta also obtains an option to license Latin American rights to Summit's utrophin modulator pipeline. Summit retains commercialization rights in all other countries.

Under the terms of the agreement, Summit will receive an upfront fee of $40 million. In addition, Summit will be eligible for future ezutromid related development, regulatory and sales milestone payments totaling up to $522 million, including a $22 million milestone upon the first dosing of the last patient in Summit's PhaseOut DMD trial, and escalating royalties ranging from low to high teens percentage of net sales in the licensed territory. Summit will also be eligible to receive development and regulatory milestones related to its next-generation utrophin modulators. Sarepta and Summit will share specified utrophin modulator-related research and development costs at a 45%/55% split, respectively, beginning in 2018. If Sarepta elects to exercise its option for Latin American rights, Summit would be entitled to additional fees, milestones and royalties.

Ropes & Gray also represented Sarepta Therapeutics in a $127 million public offering announced Oct. 7, 2015, a $37 million public offering announced June 8, 2016, and a $345 million public offering announced on Sept. 22, 2016.

The Ropes & Gray team representing Sarepta Therapeutics on the Summit Therapeutics  transaction was led by intellectual property transactions partner David McIntosh (Boston) and included intellectual property transactions associates Hannah Freeman and Rajarshi Banerjee (both of Boston).