GENFIT to acquire Versantis to expand liver disease portfolio

September 19, 2022 - 4 minutes
Photo/Shutterstock

GENFIT has entered into an exclusivity agreement with a view to acquire all the share capital and voting rights of Versantis, a private Swiss-based clinical stage biotechnology company focused on addressing the growing unmet medical needs in liver diseases.

GENFIT said the acquisition fits its strategic vision of becoming a global leader in ACLF (acute-on-chronic liver failure). 

The acquisition integrates a clinically advanced asset presenting a solid scientific rationale supported by encouraging phase 1b and preclinical data. GENFIT will also further expand its pipeline in other liver diseases characterized by high unmet medical needs with additional product candidates developed by Versantis. 

ACLF

ACLF is an underserved medical condition associated with short-term mortality (23% to 74% mortality at 28 days, depending on severity grade) and a significant cost of care. No drugs have been approved in this indication so far and incidence is growing at epidemic rates due to an aging population and a higher prevalence of diabetes, obesity, NASH (non-alcoholic steatohepatitis), as well as alcohol and drug-induced liver injury. 

From a patient perspective, the ACLF syndrome is characterized by a sudden life-threatening worsening of a pre-existing advanced chronic liver disease resulting in liver and extrahepatic organ failure (brain, kidneys, cardiovascular and respiratory). 

The cascade of multiple organ failures, including the development of a neuropsychiatric condition called hepatic encephalopathy (HE), together, lead to major complications in patients with ACLF, who can rapidly progress into coma and death. Every year, an estimated 137,000 patients are hospitalized in the U.S. alone with ACLF, with very few therapeutic options.

Content continues below

Related Content

VS-01

Versantis’ main asset, VS-01, is a first-in-class innovative liposomal-based therapeutic product candidate currently in clinical development as a potential first-line therapy for the timely recovery of ACLF and UCD. If approved, it would be the first drug to use the intraperitoneal route to simultaneously support the liver, kidney and brain, the organs that most often fail in cirrhotic patients. 

VS-01 operates to clear toxic metabolites from the body following paracentesis, by extracting them from the blood into the peritoneal (abdominal) cavity, where they are captured by proprietary scavenging liposomes which are then drained from the body. A planned 60-patient, randomized and controlled phase 2 proof-of-concept trial of VS-01 in ACLF is expected to launch in the fourth quarter 2022. 

Results by 2024

Efficacy and safety interim data are expected as early as the first half of 2024. The US Food and Drug Administration (FDA) granted VS-01 the orphan drug designation (ODD) in ACLF and in UCD and with the Rare Pediatric Diseases Designation (RPDD) for the acute treatment of UCD. The European Medicines Agency (EMA) also granted VS-01 with ODD in acute liver failure. 

Given the unmet medical need and the current standard of care, GENFIT intends to seek approval of these candidates via expedited regulatory pathways.

VS-02 is a pre-clinical oral, small molecule drug candidate being developed for the chronic management of HE, considered an endemic disease worldwide. HE is a nervous system disorder brought on by advanced chronic liver disease. VS-02 will be developed as a unique colon-active formulation designed to minimize systemic absorption of ammonia and act where ammonia is primarily produced, while reducing glutamine levels in the brain.

GENFIT will also be able to develop TS-01, a unique point-of-care diagnostic device in prototype development for the at-home measurement of ammonia in the blood, the primary cause of HE.

Content continues below

Related Content

Deal completion

The deal should be completed during the fourth quarter 2022, following completion of the consultation of GENFIT’s employees representative bodies.

Pascal Prigent, CEO of GENFIT, said: “Versantis has an exciting portfolio that is complementary to GENFIT’s. We are also thrilled to welcome a talented team that has developed a strong scientific expertise in ACLF. We believe that significant synergies exist and that this acquisition will accelerate the development of several promising drug candidates in areas of high unmet needs.” 

Financials

The deal includes an initial consideration of CHF40 million ($41.4 million) due at closing, with contingent consideration of up to CHF65 million ($67.3 million) upon positive phase 2 results for VS-01 and VS-02 and regulatory approval of VS-01.

In addition, Versantis is eligible to receive one-third of the net proceeds resulting from the potential sale of the Pediatric Review Voucher of VS-01’s pediatric application by GENFIT to a third party, or one-third of the fair market value of this voucher if GENFIT opts to apply it to one of its own programs. 

You might also be interested in the following: