Quince Therapeutics (NASDAQ:QNCX) traded lower pre-market Monday after announcing an agreement to acquire EryDel SpA, a privately held biotech based in Italy, for a combination of shares and cash.
EryDel’s lead asset, EryDex, is targeted at ataxia-telangiectasia (A-T), a rare and fatal pediatric neurological disorder that has no approved therapies.
The company is planning to begin enrollments for a global Phase 3 trial for the candidate in Q2 2024 and intends to submit a marketing application for EryDex in A-T by the end of 2025.
Per the terms of the agreement, EryDel investors will receive Quince (QNCX) shares in a stock-for-stock upfront exchange. Additionally, they will be entitled to receive up to $485 million in payments subject to the achievement of development, regulatory, and commercial milestones.
After the transaction, EryDel will operate as a wholly owned subsidiary of Quince (QNCX).
Its investors will own up to approximately 16.7% of the combined company, which will be led by the current Quince (QNCX) board including an additional EryDel representative. The deal is expected to close in Q3 2023.
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