First Wave BioPharma to sell Niclosamide program to treat IBD

First Wave BioPharma announced that it has entered a non-binding term sheet to sell its Niclosamide program for the treatment of inflammatory bowel diseases, or IBD, such as ulcerative colitis and related conditions to an undisclosed biopharmaceutical company. The Proposed Transaction will enable First Wave BioPharma to focus its development resources on its three late-stage clinical programs: Capeserod, a selective 5-HT4 receptor partial agonist licensed from Sanofi; Adrulipase, a recombinant lipase enzyme for the treatment of exocrine pancreatic insufficiency, or EPI; and, after the closing of the recently announced potential business combination with ImmunogenX, Latiglutenase, a Phase 3-ready oral biotherapeutic for celiac disease. The non-binding term sheet includes a low seven-figure upfront payment to First Wave BioPharma for rights to Niclosamide, as well as economics related to future milestones and royalties. The transaction is expected to close in the first half of 2024. Additional details of the transaction will be disclosed upon finalization and execution of the definitive agreement. Niclosamide is a prescription, non-systemic, small molecule drug listed as an essential medicine by the World Health Organization. Niclosamide was approved by the FDA in 1982 for the treatment of intestinal tapeworm infections and has been safely used on millions of patients. The drug is a potential non-steroidal anti-inflammatory therapy for the treatment of mild-to-moderate inflammatory bowel diseases.