Carmel Valley-Based Elevation Pharmaceuticals Sells to Sunovion

Massachusetts-based Sunovion Pharmaceuticals announced Thursday that it will acquire Elevation Pharmaceuticals, a locally based biopharmaceutical company that specializes in the development of aerosol therapies for respiratory diseases. The acquisition includes a product Elevation has in clinic trial for patients with moderate to severe chronic obstructive pulmonary disease.

According to Elevation Pharmaceuticals, Sunovion will make an upfront payment of $100 million to its shareholders on closing of the acquisition of its shares. It will also make development milestone payments for its latest product in clinical trials up to $90 million and commercial milestone payments up to $210 million after regulatory approval.

In addition, Elevation reported, “milestone payments up to $30 million could occur contingent upon the successive development of additional new programs.”

Sunovion’s portfolio of pharmaceutical products includes Latuda, Lunesta and Xopenex. It is a subsidiary of Dainippon Sumitomo Pharma Co.

The boards of both Sunovion and Elevation have approved the transaction; however the acquisition is subject to customary closing conditions.