The GLP data in conjunction the IND submission in this quarter mark the point of commitment in several other licence deals in the industry.
Yes, it seems that IND submission can be a significant point of commitment when it comes to deals.
Akouos, a small US biotech focused on gene therapies for hearing loss, was acquired by Eli Lilly last month.
Through the second half of 2021 and early this year, Akouos had been engaging in early discussions on potential licensing and R & D collaboration deals with several parties. One of these was Eli Lilly.
In May this year, Eli Lilly submitted an offer of US$9 (182% premium to 30 day VWAP) to acquire the company. This offer was rejected by the Akouos Board.
In June, Eli Lilly revised its offer to US$11.50 per share (263% premium to 30 day VWAP) but in early July elected not to proceed, deciding to pursue a partnership instead.
On 9 September, Akouos received clearance from the FDA for its IND application to initiate a Phase 1/2, first in human, clinical trial of its lead compound.
The following day, Eli Lilly contacted Akouos, saying it wanted to resume acquisition discussions. After a further offer of $12 cash per share plus one non- tradable CRV worth up to US$2.50 per share was rejected, Eli Lilly made a final, successful offer on 20 September of US$12.50 cash per share + non-tradable CRV worth up to US$3 per share payable as US$1 on each of 3 separate milestones.
The cash component of US$12.50 per share, or US$487m (A$768m) in total, represented a 213% premium on 30 day VWAP.
Akouos IPO'd in 2020 @ US$17 per share and fell to as low as US$2.30 last year amid the global biotech rout.
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