Can-Fite BioPharma Ltd. (TASE:CFBI) today announced that it signed an exclusive licensing agreement Seikagaku Corporation (TSE:4548) for the development and marketing of CF-101for the treatment of rheumatoid arthritis and other inflammatory diseases.
Under the terms of the agreement, Can-Fite will receive an aggregate $19.5 million, subject to agreed upon milestones royalties from sales of CF-101 in Japan. Seikagaku has exclusive rights to develop and market CF-101 in Japan only. Can-Fite expects to begin Phase IIa clinical trials of the drug in Israel for treating keratitis sicca (dry-eye syndrome).
Under the agreement with Seikagaku, Can-Fite will receive an immediate payment of $3.5 million. An additional $1.5 million will depend on the progress of Phase IIb clinical trials scheduled to be completed during 2007, and another $2.5 million from annual license fee.
Can-Fite will receive the outstanding $12 million, contingent on achieving milestones set forth in the agreement and based on Seikagaku’s progress in developing CF101 for rheumatoid arthritis in Japan. Can-Fite will also receive royalties from the sales of CF101, if marketed by Seikagaku, and additional income from the sale to Seikagaku of the active pharmaceutical ingredient needed to manufacture the drug for marketing in Japan.
Can-Fite cofounder and vice chairman Dr. Ilan Cohn said, “We are very pleased to partner with a respectable Japanese company such as Seikagaku. Seikagaku is a very experienced and well established research-based Japanese pharmaceutical company that entered into this agreement after having conducted a thorough and in-depth due diligence pertaining to all aspects of our CF101 drug. In signing this agreement, SKK became the first reputable international company to validate the scientific foundations of Can-Fite and the results of the clinical trials conducted thus far. This agreement will allow a continued cash flow which will help Can-Fite to continue to develop its drug pipeline."
He added that this agreement and the progress made in the clinical development were very important milestones towards lucrative deals with large multinational pharmaceutical companies.
Published by Globes [online], Israel business news - www.globes.co.il - on September 25, 2006
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