Quince to acquire EryDel in up-front stock deal + potential milestone

Quince Therapeutics announced that the company has entered into an agreement to acquire EryDel SpA, a privately-held, late-stage biotech company, in a stock-for-stock upfront exchange and potential downstream milestone cash payments. EryDel has developed an autologous intracellular drug encapsulation AIDE technology and a Phase 3 lead asset, EryDex, targeting a rare fatal pediatric neurological disease, Ataxia-Telangiectasia or A-T, which currently has no approved treatments. Upon completion of the transaction, EryDel stockholders will own approximately 16.7% of the combined company and will be entitled to up to $485M upon the achievement of development, regulatory, and commercial milestone payments, with no royalties. The transaction, which has been unanimously approved by the Boards of Directors of both companies, is subject to certain regulatory approvals and other closing conditions and is expected to close in the third quarter of 2023…Strong balance sheet with approximately $87.6M in cash, cash equivalents, and short term investments as of June 30 , to provide funding for operating requirements into 2026. Potential to out-license ex-U.S. regional territories to provide runway through regulatory approval of EryDex. ..Upon completion of the stock-for-stock upfront exchange, EryDel stockholders will own a maximum of approximately 16.7%, or 7,250,352 shares, of the combined company. The transaction agreement includes up to $485M in potential total downstream cash payments, including up to $5M in development milestones, $25M at NDA acceptance, $60M in approval milestones, and $395M in market and sales milestones, with no royalties paid to EryDel stockholders. The transaction will include the assumption of EryDel’s $13 million European Investment Bank loan with scheduled payments beginning in the second half of 2026. The transaction, which has been unanimously approved by the Boards of Directors of both companies, is subject to certain regulatory approvals and other closing conditions and is expected to close in the third quarter of 2023.