Concert Pharma Sells VX-561-Related Milestones To Vertex For $32M

Concert Pharmaceuticals Inc CNCE has sold potential future milestones relating to VX-561 (deutivacaftor) under the 2017 asset purchase agreement to Vertex Pharmaceuticals Incorporated VRTX for $32 million.
"This transaction provided an opportunity to secure non-dilutive capital and strengthens our balance sheet as we continue to advance CTP-543, our lead asset for alopecia areata, through its Phase 3 program," stated Roger Tung, President and CEO of Concert Pharmaceuticals.
"By receiving these proceeds, we now expect our cash, cash equivalents, and investments to fund the Company into the second quarter of 2022."
Under the asset purchase agreement, Vertex acquired worldwide development and commercialization rights to VX-561 for cystic fibrosis.
In 2017, Concert received a one-time cash payment of $160 million on closing the asset purchase, with the potential for $90 million in future milestones.
Following receipt of the $32 million, no further milestone obligations remain.
Price Action: CNCE shares closed at $4.03, and VRTX shares closed at $216.35 on Monday.