EVEREST MED has announced a significant licensing agreement for its nephrology drug candidate.

The company's wholly-owned subsidiary, Everest Medicines (Singapore) Pte. Ltd., has entered into an exclusive license and collaboration agreement with Nasdaq-listed Travere Therapeutics, Inc.

Under the terms of the deal, the subsidiary has granted Travere exclusive global rights, excluding Greater China and certain East and Southeast Asian countries, to develop and commercialize the drug civorebrutinib, also known as EVER001.

Key Financial Terms of the Agreement

The company will receive an upfront payment of $112.5 million.

It is also eligible to receive up to $1.03 billion in potential milestone payments tied to the development, regulatory approval, and commercial success across a maximum of five disease indications.

Additionally, the agreement includes tiered royalty payments, ranging from high single-digit to double-digit percentages, based on future annual net sales exceeding certain thresholds.

The final completion of the transaction is contingent upon meeting specific conditions and regulatory procedures, and the total milestone payments ultimately received remain uncertain.

Addressing Unmet Medical Needs

The announcement highlights the accelerating pace of innovation in rare kidney diseases, where patients with severe conditions often have limited treatment options.

Civorebrutinib is positioned as a potential therapy for multiple immune-mediated kidney disorders.

The drug is planned for investigation in primary membranous nephropathy, immune-mediated focal segmental glomerulosclerosis, and minimal change disease, with potential for expansion into further indications.

These conditions share an immune-mediated mechanism that can lead to kidney damage, proteinuria, and impaired renal function, potentially progressing to a need for dialysis or transplant.

Strategic Rationale

The company believes this licensing arrangement will accelerate the global development and commercialization of civorebrutinib, aiming to provide innovative treatment options for patients worldwide.

The board of directors has concluded that entering into this agreement is in the best overall interests of the company and its shareholders.