By Dean Seal

Shares of First Wave BioPharma soared after the company signed an exclusive global license agreement with Sanofi for its drug Capeserod.

The stock was up 82% at 79 cents in premarket trading. When the market closed Wednesday, shares had fallen 98% over the prior 12 months.

The Boca Raton, Fla.-based company said Thursday morning that it will receive from Sanofi an exclusive license for Capeserod and assume responsibility for all future clinical development.

First Wave has been tasked with repurposing and developing Capeserod, a selective 5-HT4 receptor partial agonist, for gastrointestinal indications.

The licensing agreement includes a modest upfront payment as well as backend milestone payments and single-digit royalties on sales. The deal also provides Sanofi with the right of first refusal to reacquire Capeserod after certain stages of clinical development and commercialize the product.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

September 14, 2023 07:19 ET (11:19 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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