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WALTHAM, Mass. - Viridian Therapeutics, Inc. (NASDAQ:VRDN), a clinical-stage biotechnology company with a market capitalization of $1.37 billion, has entered into an exclusive licensing agreement with Kissei Pharmaceutical Co., Ltd. for the development and commercialization of its thyroid eye disease (TED) treatments in Japan, according to a press release statement. InvestingPro data shows the company maintains a strong financial health score, with more cash than debt on its balance sheet.
Under the agreement, Viridian will receive an upfront payment of $70 million and could earn up to an additional $315 million in development, regulatory, and commercial milestone payments. The deal also includes tiered royalties on net sales in Japan ranging from the 20s to mid-30s percent. This cash injection comes at a crucial time, as InvestingPro analysis indicates the company has been quickly burning through cash, with a current ratio of 19.49x suggesting strong short-term liquidity. For deeper insights into Viridian’s financial health and 10+ additional ProTips, consider exploring InvestingPro’s comprehensive research report.
The license covers veligrotug and VRDN-003, both anti-insulin-like growth factor-1 receptor antibodies designed to treat TED, an autoimmune condition that causes inflammation and tissue damage around the eyes. VRDN-003 is a subcutaneous, half-life extended version with the same binding domain as veligrotug. With analyst price targets ranging from $19 to $61, the market appears optimistic about these developments, though six analysts have recently revised their earnings expectations downward for the upcoming period.
"Kissei has an established strong track record of successfully developing and commercializing in-licensed, rare disease medicines," said Steve Mahoney, Viridian’s President and CEO.
Mutsuo Kanzawa, Chairman and CEO of Kissei, cited veligrotug’s "strong and consistent phase 3 clinical data in THRIVE and THRIVE-2" as a factor in the partnership decision.
Kissei will be responsible for all development, regulatory, and commercialization activities and associated costs in Japan.
TED symptoms include swelling, discomfort, and double vision. Both THRIVE and THRIVE-2 trials met all primary and secondary endpoints, according to the press release. Viridian is also conducting two global Phase 3 trials called REVEAL-1 and REVEAL-2 to evaluate VRDN-003. The company’s next earnings report is scheduled for August 6, where investors will be looking for updates on these clinical developments and the company’s financial position. InvestingPro subscribers can access detailed financial analysis and real-time updates on Viridian’s progress through our comprehensive Pro Research Report.
Renexes LLC served as an advisor to Viridian for the transaction.
In other recent news, Viridian Therapeutics reported a narrower-than-expected first-quarter loss of $0.87 per share, outperforming analyst estimates of a $0.98 per share loss. The company also exceeded revenue expectations, reporting $70,000 compared to the anticipated $52,090. Additionally, Viridian’s drug candidate veligrotug received Breakthrough Therapy Designation from the FDA for treating thyroid eye disease, based on its performance in the THRIVE and THRIVE-2 phase 3 clinical trials. These trials showed significant improvements in proptosis response and diplopia in patients with active and chronic thyroid eye disease.
The THRIVE study further revealed that 70% of patients maintained their response to veligrotug at week 52, a promising sign of the treatment’s durability. B.Riley reiterated its Neutral stance on Viridian with a price target of $19, while Stifel maintained a Buy rating with a $41 target, citing Viridian’s progression towards becoming a commercial-stage entity. Stifel analysts noted the potential competitive edge of veligrotug in the thyroid eye disease market, which is currently led by Tepezza. They also highlighted the anticipated Veligrotug Biologics License Application in the second half of 2025, following successful Phase 3 studies.
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