Ipsen, GENFIT Enter Long-term Collaboration; Ipsen Becomes Shareholder Of GENFIT

(RTTNews) - Ipsen (IPSEY) and GENFIT (GNFT) said, under a long-term strategic partnership, Ipsen will gain exclusive worldwide license to develop, manufacture and commercialize GENFIT's investigational treatment elafibranor, for people living with Primary Biliary Cholangitis. The partnership also gives Ipsen access to future clinical programs led by GENFIT and combines GENFIT's proprietary technologies in liver disease with Ipsen's development and commercialization capabilities.

Ipsen will pay GENFIT up to 480 million euros, comprising upfront cash payment of 120 million euros, and regulatory, commercial, and sales-based milestone payments up to 360 million euros, plus tiered double-digit royalties of up to 20%. Ipsen expects the deal to be dilutive to profitability over the near term, primarily reflecting R&D and launch-preparation expenses.

Ipsen will purchase newly issued GENFIT equity representing 8% post-issuance through a 28 million euros investment in GENFIT, becoming one of the largest shareholders. The Board of GENFIT will propose at the next shareholders' meeting that Ipsen becomes a board member.