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Zogenix Will Acquire Modis Therapeutics In $250M Deal

Tanzeel Akhtar

Zogenix, Inc. (NASDAQ: ZGNX) will acquire Modis Therapeutics, a privately held biopharmaceutical company focused on developing novel therapies for rare genetic diseases for $250 million.

Under the terms of the transaction, Modis will receive an upfront payment of $250 million, comprised of $175 million in cash and $75 million in Zogenix common stock.

The lead product for Modus is “MT1621” which is a deoxynucleoside combination therapy. Modis is also eligible to receive additional milestone payments consisting of $100 million upon receipt of U.S. Food and Drug Administration approval of MT1621in the U.S. and $50 million upon European Medicines Agency approval in Europe. Zogenix will also pay a 5% royalty on any future net sales of MT1621.

Zogenix shares closed Friday down 2.82% at $50.01. The stock has a 52-week high of $56.50 and a 52-week low of $33.43.

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