Sarepta Therapeutics Inc (NASDAQ: SRPT) and Summit Therapeutics plc (NASDAQ: SMMT) reached an exclusive license and collaboration agreement. As a result, Sarepta has been granted rights in Europe, and Turkey apart from the Commonwealth of Independent States to Summit's utrophin modulator pipeline. This included its lead clinical candidate, ezutromid, designed for Duchenne muscular dystrophy treatment.

The deal enables Sarepta an option to license Latin American rights to Summit's utrophin modulator pipeline. As far as other countries, Summit retained commercialization rights.

According to the agreement terms, Summit would get an upfront fee of $40 million and would be entitled for any future ezutromid related development, regulatory and sales mile stone of a maximum of $522 million. This included $22 million milestone after the first dosing of the last patient in PhaseOut DMD study. The company is also entitled for royalties based on net sales in the licensed region.

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The companies indicated they would share specified costs in respect of utrophin modulator-related research and development at a ratio of 45:55 for Sarepta and Summit commencing from 2018. If Sarepta opts for Latin American Rights, then Summit stands to gain more through additional fees and milestones.

Sarepta CEO Edward Kaye viewed, "This partnership with Summit Therapeutics furthers our commitment to invest in innovative approaches to treating Duchenne and supports our common goal of improving the lives of patients with DMD."

Summit was trading up more than 73 percent at $15 in the pre-market session.

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