Evoke Pharma Signs Commercial and Financial Agreement for its Lead Product Gimoti™ in the U.S. with Novos Growth Partners
Novos to provide fully integrated commercial function for Evoke and non-dilutive financing for the commercialization of Gimoti, extending cash runway into 2020
Evoke will retain greater than 80% of product profits following approval
“This is a landmark agreement for Evoke and leverages NGP’s fully integrated commercialization platform and experienced management team for the commercialization of Gimoti. The combination of NGP’s commercial capabilities and financial resources address several of our corporate interests while allowing us to retain product ownership, a significant percentage of sales revenue and additional strategic flexibilities. We are working closely with NGP in preparation for Gimoti’s potential product launch this year,” commented
Under the terms of the agreement, Evoke maintains ownership of the Gimoti New Drug Application (NDA). In addition, Evoke will maintain legal, regulatory, and manufacturing responsibilities. Evoke will also retain a contract sales organization, which would be managed by NGP and who will finance the working capital for launch. Evoke will record sales for Gimoti and retain more than 80% of product profits. NGP will receive a percentage of product profits in the mid to high teens as a service fee once Gimoti net sales surpass commercialization costs. In addition to the non-dilutive working capital, NGP has agreed to provide up to
Gimoti is expected to be launched in
Gastroparesis is a debilitating, episodic condition that disproportionately affects adult women and is characterized by slow or delayed gastric emptying of the stomach’s contents after meals, often resulting in flares of symptoms that include nausea, vomiting, abdominal pain and bloating. Vomiting and gastric emptying delays can cause unpredictable absorption of food and oral medications, which complicate glucose control and can lead to dehydration and malnutrition. These clinical manifestations of gastroparesis also potentially render existing oral drug treatment options ineffective. If approved, Gimoti would be the first non-oral drug treatment for symptoms associated with acute and recurrent diabetic gastroparesis in adult women and would represent the first significant advancement in the treatment of gastroparesis in 40 years.
Evoke is a specialty pharmaceutical company focused primarily on the development of drugs to treat GI disorders and diseases. The Company is developing Gimoti, a nasal spray formulation of metoclopramide, for the relief of symptoms associated with acute and recurrent diabetic gastroparesis in adult women.
Diabetic gastroparesis is a GI disorder affecting millions of patients worldwide, in which the stomach takes too long to empty its contents resulting in serious digestive system symptoms. The gastric delay caused by gastroparesis can compromise absorption of orally administered medications. Metoclopramide is currently available only in oral and injectable formulations and is the only drug currently approved in
Safe Harbor Statement
Evoke cautions you that statements included in this press release that are not a description of historical facts are forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negatives of these terms or other similar expressions. These statements are based on the company’s current beliefs and expectations. These forward-looking statements include statements regarding: the potential timing of
The Ruth Group
Source: Evoke Pharma, Inc.