First Wave BioPharma Secures Exclusive Global License Agreement with Sanofi for Capeserod Drug

By Dean Seal

Shares of First Wave BioPharma experienced a significant surge following the announcement of an exclusive global license agreement with Sanofi for its drug Capeserod.

In premarket trading, the stock soared by an impressive 82% to reach 79 cents. However, over the past 12 months, the shares had previously fallen by a staggering 98% as of Wednesday's market close.

Headquartered in Boca Raton, Florida, First Wave expressed its gratitude on Thursday morning for securing the exclusive license for Capeserod from Sanofi. Furthermore, the company will now take on the responsibility of all future clinical development.

First Wave's main objective will be to repurpose and develop Capeserod, which is a selective 5-HT4 receptor partial agonist, for gastrointestinal indications.

Under this licensing agreement, First Wave will receive a modest upfront payment. Additionally, they are entitled to backend milestone payments and single-digit royalties on sales. Moreover, Sanofi has been granted the right of first refusal to reacquire Capeserod once specific stages of clinical development have been reached, in order to commercialize the product.