Ob­sE­va, des­per­ate for cash, sells rights to PhII drug in bid to ex­tend run­way, test new preg­nan­cy can­di­date

Just a few months af­ter Ob­sE­va sub­stan­tial­ly im­plod­ed over a big set­back re­lat­ing to its lead drug, lin­zagolix, the women’s health biotech is sell­ing rights to one of on­ly two drugs left in its pipeline.

Ob­sE­va put out word Tues­day that it is sell­ing all its rights to ebopiprant, a PGF2α re­cep­tor an­tag­o­nist be­ing test­ed in Phase II for preterm la­bor, to XO­MA for $15 mil­lion up­front, plus $98 mil­lion in mile­stones for a to­tal of $113 mil­lion.

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