KalVista Pharmaceuticals Confirm Partnership with Merck

10:12 10/10/2017

A clinical phase pharmaceutical company KALV  announced today that they have entered a collaboration contract with Merck, known as MSD outside the U.S and Canada, to study KVD001. This treatment is KalVista’s investigational intravitreal (IVT) injection candidate in development to treat diabetic macular edema (DME).

Under the terms of the arrangement, KalVista allows Merck provisional rights that include options to obtain KVD001 following completion of Phase 2 that KalVista plans to begin later this year. Also, KALV  has allowed Merck an option to secure investigational orally distributed molecules for DME that KalVista will continue to develop.

Merck will pay KalVista a non-refundable $37 million upfront payment. KALV  will also obtain royalties on sales for therapeutic candidates under this agreement. KalVista will fund the Phase 2 project, unless Merck utilizes its options earlier.

CEO of KalVista, Andrew Crockett said, “We are pleased to collaborate with Merck for the continuing development of KVD001 and future oral programs for patients with DME.”

“We have always believed that development and commercialization of our DME therapies would require the resources of a large pharmaceutical company, and we believe Merck has the wherewithal and resources to help us advanced of our DME drug candidates. We look forward to providing more details about the Phase 2 trial for KVD001 in DME patients as the trial commences,” Crockett added.

KALV  shares jumped 115% in today’s trading on the NASDAQ exchange because of the breaking news. KalVista’s shares went from trading at $7 for the past six months to a new 52-wk high of $15.80.

KalVista anticipates to continue to violently pursue its efforts to develop the best oral therapy for hereditary angioedema (HAE). This agreement only secures options for the investigational IVT and oral plasma kallikrein inhibitor programs for DME. Merck receives a 9.9% stake in KalVista private placement.

This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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