Vertex Pharmaceuticals, Entrada Therapeutics enter EEV therapeutics pact

Vertex Pharmaceuticals (VRTX) and Entrada Therapeutics (TRDA) announced a collaboration focused on discovering and developing intracellular Endosomal Escape Vehicle, or EEV, therapeutics for myotonic dystrophy type 1, or DM1. The collaboration includes Entrada’s program for DM1, ENTR-701, which is in late-stage preclinical development. Under the terms of the agreement, Entrada will receive an upfront payment of $224M, as well as an equity investment of $26M. Entrada is eligible to receive up to $485M for the successful achievement of certain research, development, regulatory and commercial milestones, and tiered royalties on future net sales for any products that may result from this collaboration agreement. The agreement includes a four-year global research collaboration whereby Entrada will continue to advance and receive payments for certain research activities related to ENTR-701, as well as additional DM1-related research activities. Vertex will be responsible for global development, manufacturing and commercialization of ENTR-701 and any additional programs stemming from Entrada’s DM1 research efforts. The collaboration is subject to review under the Hart-Scott-Rodino Antitrust Improvements Act.