June 1 (Reuters) - Biotech firm Edgewise Therapeutics ( EWTX )

said on Monday it would sell its experimental muscular

dystrophy drug and related business to France's Servier for up

to $2.65 billion.

The French drugmaker will secure global rights to the

U.S.-based biotech's candidate, sevasemten, along with

associated intellectual property, clinical data and staff

supporting the program for $1.55 billion in upfront cash.

Edgewise will also be eligible for up to $1.1 billion in

milestone payments, the U.S-based company said.

Edgewise was testing sevasemten in Becker and Duchenne

muscular dystrophy, with trials showing muscle function benefits

in Becker patients and reductions in muscle damage markers,

alongside a favourable safety profile in trials.

Both conditions are genetic disorders that cause progressive

muscle weakness, with Becker being a milder form of Duchenne.

While Duchenne has several drugs and Sarepta Therapeutics' ( SRPT )

gene therapy, Elevidys, Becker has no approved

treatments.

"The acquisition of Edgewise Therapeutics' ( EWTX ) 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," Servier President

Olivier Laureau said.

The sale, expected to close in the third quarter, would also

strengthen Edgewise's balance sheet, with the company planning

to use the proceeds for development of lead candidate EDG-7500.

The drug is being tested for hypertrophic cardiomyopathy, a

condition that thickens the heart muscle and makes it harder to

pump blood, with 12-week data from itsmid-stage trial expected

in the second quarter.