Milestone fees related to development, approval, and sales could reach $136 million.

BioMarin Pharmaceutical is acquiring Summit’s Duchenne muscular dystrophy program through a $7 million equity investment. The transaction covers preclinical candidate SMT C1100 and all follow-on molecules.

Summit could make an additional $51 million once certain development and regulatory goals are achieved. Furthermore, the firm will earn tiered royalties rising to the low teens depending on sales levels and sales milestones, giving a total deal value of up to $143 million.

The equity investment of $7 million, or £3.54 million, will be made at 69 pence per share. BioMarin will hold approximately 9.16% of the enlarged share capital of Summit.

Summit will be responsible for completing the preclinical development of SMT C1100. BioMarin will take over the clinical development, regulatory filing, and commercialization of the candidate. “We are pleased to work with Summit on the Duchenne muscular dystrophy program. SMT C1100, an oral small molecule utrophin upregulator, has shown promise in animal models of DMD and may have the potential for treating the entire spectrum of DMD patients, not just those with a particular type of mutation,” remarks Jean-Jacques Bienaime, CEO of BioMarin.

“The DMD indication aligns well with our growing product-development pipeline as it is a genetic disorder with no approved treatments. IND-enabling studies with SMT C1100 are under way, and we plan on entering the clinic in 2009.”

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