Servier is expanding its neurology focus to include neuromuscular disorders by acquiring a clinical-stage Edgewise Therapeutics drug that offers a new approach to treating two rare muscle diseases.
Under terms of the deal announced Monday, Suresnes, France-based Servier will pay Edgewise Therapeutics $1.55 billion in advance. If the muscle drug hits specified milestones, the Colorado-based biotech could receive up to $1.1 billion more.
Edgewise’s approach to muscular dystrophy was to protect and preserve muscle. Its drug, sevasemten, is an oral small-molecule inhibitor of fast skeletal myosin, a protein responsible for rapid contractions of muscle fibers. These contractions lead to a progressive worsening of muscle damage. The molecule is designed to be selective to fast skeletal myosin, sparing cardiac and smooth muscle myosin.
Sevasemten is currently in phase 3 testing for Becker muscular dystrophy and phase 2 testing for Duchenne muscular dystrophy, two rare muscle diseases which come from the lack of a key muscle protein called dystrophin. Although there are a few FDA-approved treatments for Duchenne, Becker currently has no approved treatments.
Servier is privately owned and run by a foundation, but it still discloses financial information. Oncology is its largest therapeutic area, accounting for 2.2 billion euros (about $2.5 billion) of the company’s 6.9 billion euros (about $8 billion). turnover for the financial year ending September 30, 2025. Servier strengthened its oncology portfolio and pipeline earlier this year with the Acquisition of Day One Biopharmaceuticals for $2.4 billionwhich makes a FDA-approved drug for a type of pediatric brain cancer and also has a pipeline of antibody-drug conjugates acquired through commercial agreements.
Beyond investments in rare cancers, Servier said its priorities extend to rare diseases in neurology, including neuromuscular diseases. The company is investing in these areas as part of its goal to increase its annual turnover to 10 billion euros (about $11.6 billion) by 2030.
“The acquisition of Edgewise Therapeutics’ muscular dystrophy business is a key step in realizing our Servier 2030 ambition in neurology with a talented team of experts and a promising asset in muscular dystrophies,” Olivier Laureau, president of Servier, said in a prepared statement.
Meanwhile, Edgewise said the transaction would allow it to focus on its cardiovascular drug portfolio, led by EDG-7500, a cardiac sarcomere modulator in phase 2 testing for symptomatic hypertrophic cardiomyopathy. Edgewise is also in early-stage development with another cardiac sarcomere modulator, EDG-15400, for heart failure. EDG-003 is in preclinical development for an undisclosed cardiometabolic condition.
Joseph Schwartz, an analyst at Leerink Partners, who follows Edgewise, has a positive view of the deal. In a note sent to investors Monday, he said the deal eliminates a downside for many investors who have not appreciated the value of the Becker muscular dystrophy opportunity and instead view cardiology as the primary driver of value for the company’s stock.
The initial amount that will be paid by Servier should fully finance the development of EDG-7500 through possible approval in the treatment of hypertrophic cardiomyopathy. Beyond the initial payment, Edgewise said in a statement regulatory filing that achieving milestones could yield $200 million for approval to treat Becker muscular dystrophy in specified adult and adolescent patients or $100 million for adults only; $600 million for U.S. approval to treat Duchenne muscular dystrophy; and $300 million if sevasemten sales exceed $550 million. The transaction is expected to be completed in the third quarter of this year.
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