Tossed in a storm of con­tro­ver­sies, Pro­teosta­sis finds shel­ter in $100M cash Roche deal — shares surge

Af­ter a tu­mul­tuous year marked by a vi­cious short at­tack, a yanked stock of­fer­ing and en­cour­ag­ing ear­ly da­ta on its cys­tic fi­bro­sis (CF) dou­blet, tiny biotech Pro­teosta­sis Ther­a­peu­tics has won the en­dorse­ment of mighty Roche, which has seized the rights to po­ten­tial small mol­e­cule mod­u­la­tors with undis­closed tar­gets from the em­bat­tled com­pa­ny.

Un­der the deal — which does not in­clude the con­tro­ver­sial com­pa­ny’s CFTR mod­u­la­tors and its drugs-in-de­vel­op­ment or re­search pro­grams in CF — Pro­teosta­sis is el­i­gi­ble to re­ceive up­front and mile­stone pay­ments of over $100 mil­lion. The Swiss drug­mak­er $RHB­BY is now in charge of all R&D ex­pens­es for the pro­gram, and if any ap­proved prod­ucts emerge from the deal, Pro­teosta­sis will make tiered roy­al­ties on sales. 

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