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Onspira Therapeutics, a private drug development company based in Wayne, is being bought by Altavant Sciences, a clinical-stage biopharmaceutical company.

This acquisition expands Altavant's pipeline to include OSP-101, a novel inhaled interleukin-1 receptor antagonist with orphan drug designation from the U.S. Food and Drug Administration. OSP-101 is in preclinical development for the treatment of bronchiolitis obliterans syndrome, the leading non-infectious complication following lung transplantation and a major cause of death in these patients.

Under the terms of the agreement, Onspira's shareholders received an upfront payment and will receive additional payments upon the achievement of development, regulatory and commercial milestones. In addition, Onspira's shareholders will be eligible for royalties on net sales.

This is the first acquisition conducted by a subsidiary of the newly-formed Sumitovant Biopharma. The acquisition has closed and will have a minor effect on Sumitomo Dainippon Pharma's consolidated financial results for FY2019.

Hogan Lovells US LLP served as Altavant's legal counsel. Aquilo Partners, L.P. acted as the financial adviser to Onspira on the transaction and Duane Morris LLP served as Onspira's legal counsel.