Fulcrum Therapeutics, Inc. (NASDAQ:FULC) received written notice from MyoKardia, Inc. for the termination of the collaboration and license agreement dated July 20, 2020.
Under the agreement, Fulcrum had granted MyoKardia an exclusive worldwide license to discover, develop, and commercialize novel targeted therapies for genetic cardiomyopathies.
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Under the agreement, under a mutually agreed research plan, Fulcrum agreed to perform assay screening and related research activities to identify and validate up to a specified number of potential cardiomyopathy gene targets for further research, development, manufacture, and commercialization by MyoKardia.
MyoKardia paid Fulcrum $10.0 million upfront and $2.5 million in prepaid research funding. It also agreed to reimburse Fulcrum for the costs of research activities not covered by the prepaid research funding up to a maximum of the total research funding.
Upon the achievement of specified milestones, Fulcrum would have been entitled to preclinical milestone payments, development milestone payments and sales-based milestone payments of up to $298.5 million in the aggregate per target for certain identified targets, and of up to $150.0 million in the aggregate per target for certain other identified targets.
Fulcrum achieved a $2.5 million specified preclinical milestone. MyoKardia also agreed to pay Fulcrum tiered royalties ranging from a mid-single-digit percentage to a low double-digit percentage.
In 2020, Bristol Myers Squibb Co (NYSE:BMY) acquired MyoKardia for $13.1 billion.
As per the SEC filing, the termination will become effective on June 26, 2025.
Price Action: FULC stock is up 1.38% at $3.32 at the last check Wednesday.
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