PTC Therapeutics signs licensing agreement with Roche

02-Dec-2011 - Switzerland

PTC Therapeutics, a portfolio company of HBM BioVentures, announced the signing of a licensing agreement with Roche to advance development of its spinal muscular atrophy (SMA) programme. Under the terms of the agreement PTC granted Roche exclusive, worldwide rights to its programme, which includes three compounds currently in preclinical development as well as potential back-up compounds. PTC will receive an upfront payment of USD 30 million and is eligible for additional milestone payments of up to USD 460 million plus double-digit royalties on potential sales.

SMA is a genetic neuromuscular disorder that causes muscle weakness and is the leading genetic cause of death in infants and toddlers. One in every 10’000 children born is affected with the disorder, which currently has no effective treatment.

HBM BioVentures has invested USD 29 million in PTC over several rounds of financing and is its second largest shareholder. The company has two product candidates at the clinical stage of development and several preclinical and discovery stage programmes. PTC's most advanced product candidate isAtaluren(PTC124®), which is being evaluated in multiple Phase 2 and 3 clinical trials.

In accordance with HBM BioVentures’ valuation principles, the book value of our investment in PTC will not be changed in spite of this positive news.

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