Genfit Shares Rally After Ipsen Buys Rights To Its Late-Stage Kidney Disease Treatment Hopeful

Ipsen SA IPSEY has entered into a long-term strategic partnership to develop, manufacture, and commercialize and Genfit SA's GNFT elafibranor for Primary Biliary Cholangitis (PBC). 

• Under the agreement, Ipsen will pay Genfit up to €480 million, including an upfront cash payment of €120 million and milestone payments up to €360 million, plus tiered double-digit royalties of up to 20%. 
• Ipsen will also invest €28 million via equity, representing 8% post-issuance in Genfit.
• Genfit remains responsible for the Phase 3 ELATIVE trial until completing the double-blind period. 
• Ipsen will assume responsibility for all additional clinical development, including completion of the long-term extension period of the ELATIVE trial and global commercialization. 
• The ELATIVE is evaluating the safety and efficacy of elafibranor in 150 PBC patients who have an inadequate response or intolerance to ursodeoxycholic acid (UDCA).
• Topline data is expected in early 2023.
• Price Action: GNFT shares are up 41.9% at $4.71 during the premarket session on the last check Friday.