Inventiva enters licensing agreement with Hepalys, to receive $10M upfront

Inventiva and Hepalys Pharma entered into an exclusive licensing agreement to develop and commercialize Inventiva’s drug candidate lanifibranor for the treatment of non-alcoholic steatohepatitis in Japan and South Korea. Hepalys Pharma is a new company founded by Catalys Pacific. In parallel of the incorporation of Hepalys Pharma, Inventiva has exercised its right to own 30% of the company. Under the terms of this licensing agreement, Inventiva will receive a $10M upfront payment from Hepalys Pharma and will be eligible to receive up to $231M in milestone payments if certain clinical, regulatory and commercial conditions are met. Subject to regulatory approval, Inventiva has the right to receive tiered royalties from mid double digits to low twenties based on net sales of lanifibranor in Japan and South Korea. In parallel of the incorporation of Hepalys Pharma, Inventiva has exercised its right to own 30% of the company. In addition, Inventiva has the option to acquire the outstanding shares of Hepalys Pharma at a pre-agreed multiple of post-money valuation under certain conditions, and has a right of first refusal if Hepalys Pharma receives an offer to sell the license and rights related to lanifibranor.