BioVie Inc. (NASDAQ:BIVI) ("BioVie" or "Company"), a clinical-stage company developing innovative drug therapies for chronic debilitating liver diseases, today announced amendments to certain terms for the previously announced acquisition of the biopharmaceutical assets of NeurMedix, Inc., (NeurMedix), a San Diego based privately held clinical-stage pharmaceutical company focused on novel therapeutic assets for the treatment of neurodegenerative and neurological disorders, as well as certain cancers. The pivotal Phase 3 trial in Alzheimer's Disease is expected to begin this summer.
Under the amended terms of the agreement, the upfront consideration BioVie will pay to NeurMedix remains unchanged. Payment of additional stock consideration as various significant clinical, regulatory, and commercial milestones are met has been amended to be made in fixed share amounts as follows:
- Payments at closing
- 8,361,308 newly issued BioVie shares
- Approximately $3.0 million in cash
- An additional $7.3 million cash payment payable upon the pivotal Phase 3 clinical trial for NeurMedix's Alzheimer's drug candidate has met its primary endpoint(s) and the successful raise of $50 million of new capital.
- Amended contingent payments in additional BioVie shares (capped at 87.5% ownership, down from the previous 89.9999% cap) upon achievement of significant milestones
- 4.5 million shares upon hitting endpoints in a pivotal trial
- 4.5 million shares upon FDA acceptance of NDA filing
- 4.5 million shares upon FDA approval of NDA
- 4.5 million shares upon achieving $1.0 billion trailing 12-month net sales
Before the amendment, BioVie was obligated to issue up to $3.0 billion of BioVie shares upon the achievement of the significant milestones. After the amendment, the contingent stock consideration has been capped at 18 million shares.
The transaction is expected to close in June 2021.