Selvita: Menarini Group in-licensed SEL24
Edison | Mar 29, 2017 02:46AM ET
Today Selvita (WA:SLVP) announced that it has out-licensed its lead asset SEL24 (dual PIM/FLT3 kinase inhibitor) to Menarini Group making it the first deal for a proprietary clinical-stage asset. Selvita will be responsible for the continuation of the current Phase I/II trial for acute myeloid leukaemia (AML) with the first patient enrolled earlier this month until the estimated takeover of the trial by Menarini at end-2017. Furthermore, both companies will collaborate on additional preclinical research on PIM/FLT3 targets. The upfront payment is €4.8m, with Selvita eligible for a total of €89.1m in potential milestone payments, and non-specified single to low-double digit royalties and cost sharing.
We have already included a licensing deal in our model assuming $15m (€14m) in upfront, $70m (€64m) in R&D milestone payments and a 5% royalty. While the upfront payment is slightly lower that our estimate, milestone payments compare well (although Selvita did not specify the spilt of R&D versus commercial milestones). Moreover, negotiated single to low-double digit royalties appear to be higher than our 5% estimate, so overall we view the deal terms as favourable and broadly in line with our expectations. Selvita will report its FY16 results on 19 April. We will update our operational forecasts, deal terms and valuation following the results.
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