Mirum Pharmaceuticals, Inc. (NASDAQ: MIRM) confirmed that it has bought Satiogen Pharmaceuticals, Inc. Satiogen, which is now a wholly-owned Mirum subsidiary, was an established LIVMARLI oral solution and volixibat license partner. Mirum received all Satiogen licensing fees and intellectual property related to LIVMARLI and volixibat as part of the deal.
LIVMARLI oral solution is a once-daily, orally-administered, ileal bile acid transporter (IBAT) inhibitor authorized by the US FDA for the cure of cholestatic pruritus in patients with Alagille syndrome (ALGS) aged one year and up. It is the only FDA-authorized medication to treat cholestatic pruritus linked with Alagille syndrome.
Total licensing royalty liabilities for LIVMARLI and volixibat will be reduced from the high single digits to the low teens as a result of the deal. The total potential payment for the acquisition was comprised of 841,792 shares of common stock.
Out of 841,792 shares of common stock 199,993 are contingent on the accomplishment of a milestone. On the other hand, $2.8 million in cash in exchange for an equivalent amount of cash on Satiogen's books that Mirum purchased at the closing. The Satiogen subsidiary will be entirely owned by Mirum and will earn a 2% royalty.
Furthermore, the purchase of Satiogen is a strategic move that centralizes the economics of its commercial and pipeline activities. The Satiogen team created part of the framework for IBAT inhibitors' promise in liver illness, which is now translating to significant patient benefits and the successful introduction of LIVMARLI in Alagille syndrome. Mirum appreciates the Satiogen team's efforts as it tries to advance essential medicines for rare diseases.