Fortress Biotech, Inc. (NASDAQ: FBIO) is experiencing a notable upswing on the US stock charts today. The stock of Fortress Biotech has appreciated by 4.55% as of the last check in the current trading session, reaching a value of $3.45. This surge in FBIO stock value is attributed to a recent strategic maneuver undertaken by its subsidiary.
This week, Fortress Biotech (FBIO) formally disclosed that its wholly-owned entity, Cyprium Therapeutics, has executed an Assignment and Assumption Agreement. This agreement has been formalized with Sentynl Therapeutics, a specialized pharmaceutical company based in the United States and wholly owned by Zydus Lifesciences Ltd.
Within the framework of this agreement, the FBIO subsidiary successfully transferred its proprietary rights and assigned its FDA-related documentation for CUTX-101, a Copper Histidinate product candidate designed for the treatment of Menkes disease, to Sentynl.
At the closing of the deal, Cyprium received a sum of $4.5 million and retains the potential to earn up to $129 million in combined development and sales milestones as specified in the Agreement. Furthermore, the FBIO subsidiary stands to receive royalties based on the net sales of CUTX-101.
FBIO will receive 3% of revenue from net sales up to $75 million, increasing to 8.75% if sales exceed $75 million. If sales exceed $100 million, then FBIO subsidiaries will receive 12.5% of revenue. With progress underway in the CUTX-101 rolling NDA submission, Cyprium anticipates that Sentynl will conclude the filing process in 2024.
The transition of the CUTX-101 program to Sentynl is expected to result in a reduction in Cyprium’s development-related expenditures while potentially expediting the commercialization process post-FDA approval.
The drug has exhibited a compelling safety and efficacy profile for Menkes disease treatment. If approved, CUTX-101 stands to address a significant unmet need for children afflicted by this rare and fatal pediatric condition. Cyprium will maintain full ownership of any FDA priority review voucher issued upon NDA approval for CUTX-101.
