Published on 31 Mar 2023 on Zacks via Yahoo Finance

Scynexis (SCYX) Inks Antifungal Drug Deal With GSK

Shares of Scynexis SCYX surged almost 76% on Mar 30, after it entered an exclusive license agreement with GSK Plc GSK to commercialize Brexafemme (ibrexafungerp), an antifungal treatment for vulvovaginal candidiasis (VVC) and for the reduction in the incidence of recurrent VVC (RVVC). The agreement will also entitle GSK to develop ibrexafungerp in a phase III study to potentially treat invasive candidiasis (IC).

Brexafemme was launched in 2021 to treat patients with VVC, commonly known as vaginal yeast infection. The drug was approved for RVCC in December 2022. In October 2022, SCYX announced that it is actively pursuing a U.S. commercialization partner to out-license Brexafemme to refocus its resources on the development of ibrexafungerp. As a result, the company began to wind down its promotional activities associated with Brexafemme and has been looking for a partner since then.

Under the agreement, Scynexis will receive an upfront payment of $90 million from GSK. SCYX will be entitled to $245.5 million for development, regulatory and commercial milestones, and a separate $15 million tied to an FDA approval for any additional indication. The latter will also pay sales-related milestones up to $242.5 million and mid-single to mid-teen-digit tiered royalties on the entirety of sales across all indications (in both cases, with the top tier based on achieving net sales greater than $1 billion).