SCYNEXIS (SCYX) M&A announcement summary

Deal rationale and strategic fit

• Acquisition of SCY-770 provides global rights to a novel, selective AMPK activator for ADPKD, aligning with a strategy to target severe, rare diseases with significant unmet needs and commercial potential.

• SCY-770 offers a differentiated mechanism of action with potential for improved efficacy and safety over current therapies and possible application beyond ADPKD.

• The deal marks a strategic shift from antifungal to rare renal disease, leveraging leadership expertise in drug development and asset monetization.

• The acquisition supports the mission to deliver innovative therapies and create long-term value in rare disease therapeutics.

Financial terms and conditions

• Upfront payment of $8 million to Poxel, with up to $8 million in development milestones and up to $180 million in commercial milestones, including $125 million triggered by annual net sales at or above $1 billion.

• No royalties owed on future sales.

• The acquisition was structured to limit near-term cash outlay and optimize resource deployment for clinical advancement.

• Recent $40 million PIPE financing extends operational runway to mid-2029, covering completion of SCY-770 phase II.

• Excludes potential milestone and royalty income from partnered antifungal assets.

Synergies and expected cost savings

• Acquisition leverages existing development expertise and resources to efficiently advance SCY-770.

• Existing antifungal portfolio offers opportunities for non-dilutive funding and potential partnerships, supporting overall financial flexibility.