DLA Piper advises Knopp Biosciences in the sale of its subsidiary, Channel Biosciences, to Biohaven
DLA Piper represented Knopp Biosciences LLC as IP counsel in the sale of Knopp’s subsidiary, Channel Biosciences LLC, and its Kv7 channel targeting platform for the treatment of epilepsy and other neurologic disorders, to Biohaven Pharmaceutical Holding Company Ltd. (NYSE: BHVN).
Knopp Biosciences is a privately held, Pittsburgh-based drug discovery and development company focused on delivering breakthrough treatments for immunological and neurological diseases with high unmet need. Knopp’s clinical-stage oral small molecule, dexpramipexole, is in development for eosinophilic asthma. Knopp’s preclinical Kv7 platform is directed to small-molecule treatments for epilepsy and neuropathic pain.
In consideration for the transaction, Biohaven will make an upfront payment comprised of $65 million in Biohaven common shares and $35 million in cash to Knopp Biosciences. Biohaven has also agreed to make additional success-based earnout payments (i) up to $325 million based on BHV-7000 developmental and regulatory epilepsy milestones through approvals in the US, EU and Japan, (ii) up to an additional $250 million based on developmental and regulatory milestones for the Kv7 pipeline development in other indications and additional country approvals, and (iii) up to $562.5 million in scaled, commercial annual sales-based milestones of BHV-7000, the total of which will be achieved when annual sales exceed $3 billion. Biohaven has also agreed to make scaled royalty payments for BHV-7000 and the pipeline programs, starting at high single digits and peaking at low teens for BHV-7000 and starting at mid-single digits for the pipeline programs.
“It was a pleasure to advise Knopp in its sale of Channel Biosciences to Biohaven, bringing together our extensive experience advising cutting-edge life sciences companies on the IP aspects of sophisticated transactions,” said DLA Piper partner Nicole Endejann, who led the IP deal team along with partner Ray MillerDLA Piper advises on all aspects of the life sciences sector, combining subject matter experience with considerable knowledge of the scientific, medical, regulatory, commercial and enforcement environments facing biopharmaceutical, medical device, research and diagnostics clients. Recognizing that clients’ needs vary, the firm rapidly organizes and customizes client service teams, whether for a large pharmaceutical company, a mid-sized medical device client or a development-stage biotech company.
