Servier is expanding its scope in neurology to include neuromuscular disorders by acquiring a clinical-stage Edgewise Therapeutics drug that offers a novel approach to treating two rare neuromuscular disorders.
Per deal terms announced Monday, Suresnes, France-based Servier will pay Edgewise Therapeutics $1.55 billion up front. If the muscle drug achieves 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 muscles. Its drug, sevasemten, is an oral small molecule inhibitor of fast skeletal myosin, a protein responsible for fast contractions of muscle fibers. Those contractions leads to progressively worsening muscle damage. The molecule is designed to be selective to fast skeletal myosin, sparing cardiac and smooth muscle myosin.
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Sevasemten is currently in Phase 3 testing for Becker muscular dystrophy and in Phase 2 testing for Duchenne muscular dystrophy, both rare muscle diseases that stem from the lack of a key muscle protein called dystrophin. While there are a few FDA-approved treatments for Duchenne, Becker currently has no approved therapies.
Servier is privately held and governed by a foundation, but it still discloses financial information. Oncology is its biggest therapeutic area, accounting for €2.2 billion (about $2.5 billion) of the company’s €6.9 billion (about $8 billion) in total revenue for the fiscal year that ended Sept. 30, 2025. Servier boosted its oncology portfolio and pipeline earlier this year with the $2.4 billion acquisition of Day One Biopharmaceuticals, which makes an FDA-approved drug for a type of pediatric brain cancer and also has a pipeline of antibody drug conjugates acquired from business deals.
Beyond investing in rare types of cancer, Servier has stated its priorities extend to rare diseases in neurology, including neuromuscular disorders. The company is investing in these areas as part of a goal to grow annual revenue to €10 billion (about $11.6 billion) by 2030.
“The acquisition of Edgewise Therapeutics’ muscular dystrophy business is a key step forward to achieve our Servier 2030 ambition in neurology with a team of talented experts and a promising asset in muscular dystrophies,” Olivier Laureau, president of Servier, said in a prepared statement.
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Meanwhile, Edgewise said the transaction will enable it to focus on its cardiovascular drug pipeline, led by EDG-7500, a cardiac sarcomere modulator in Phase 2 testing for symptomatic hypertrophic cardiomyopathy. Edgewise is also in early-stage development with a different cardiac sarcomere modulator, EDG-15400, for heart failure. EDG-003 is in preclinical development for an undisclosed cardiometabolic condition.
Leerink Partners analyst Joseph Schwartz, who follows Edgewise, has a positive view of the transaction. In a note sent to investors on Monday, he said the deal removes an overhang for many investors who did not appreciate the value of the Becker muscular dystrophy opportunity and instead see cardiology as the main driver of value for the company’s stock.
The upfront cash paid by Servier is expected to fully fund development of EDG-7500 through potential approval in hypertrophic cardiomyopathy. Beyond the upfront payment, Edgewise said in a regulatory filing that achieving milestones could bring $200 million for an approval in Becker muscular dystrophy in specified adult and adolescent patients or $100 million for adults only; $600 million for U.S. approval in Duchenne muscular dystrophy; and $300 million if sevasemten sales top $550 million. The transaction is expected to close in the third quarter of this year.
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