Shares of Manchester-based drug discovery company C4X Discovery Holdings plc (C4XD) soared 99% after it said it signed a licensing agreement worth up to $294 million with Indivior for an addiction treatment programme.
C4XD said it will receive $10 million up front, with potential milestones totalling $284 million plus royalties.
C4XD said in a statement: “C4X Discovery Holdings plc, a pioneering drug discovery company, today announces that it has signed a licensing agreement with Indivior UK Limited to further develop and commercialise C4XD’s oral Orexin-1 receptor antagonist (C4X3256) for the treatment of addiction.
“C4X3256 aims to treat addiction by targeting the ‘craving’ process itself and, therefore, can be applied across a broad range of substance use disorders.
“The treatment of addiction represents a substantial area of unmet medical need, forecast to be worth an estimated $13 billion per annum in 2018.
“Under the terms of the agreement, C4XD will receive an upfront payment of $10 million and could receive up to $284 million of potential development, regulatory and commercialization milestones in addition to royalties.
“In turn, Indivior receives a global and exclusive licence to C4X3256 and all other compounds in the same patent family and is responsible for the cost and execution of all further development of C4X3256.
“The agreement covers the development of Orexin-1 antagonists for multiple indications.”
Dr Clive Dix, CEO of C4X Discovery, said: “C4X Discovery is a pioneer in drug discovery and today’s licensing agreement with Indivior, a world-leader in developing and commercialising treatments for addiction, highlights the ability of our drug discovery engine to generate best-in-class small-molecule candidates in high value therapeutic areas.
“Our goal is to drive returns through early-stage revenue-generating deals with the pharmaceutical industry.
“This agreement will allow us to accelerate the development of our portfolio to similar successful commercial arrangements and validates our business model.”