Can-Fite BioPharma Ltd. (TASE:CFBI) has signed an out license agreement with Korean pharmaceutical firm Kwang Dong Pharmaceutical Co., granting Kwang Dong exclusive rights to develop and commercialize Can-Fite drug CF101 for rheumatoid arthritis, in Korea.
A term sheet on the deal was agreed upon back in September.
The Korean firm will purchase an approximately 1% equity stake in Can-Fite, at a premium of 50% above market price.
The terms of the license include an upfront payment as well as milestone payments to Can-Fite in an aggregate amount of $1.5 million, and certain royalties on sales.
Can-Fite already signed a similar licensing deal in Japan with SKK. That agreement has generated about $6 million out of a total $20 million.
Eventually, selling the marketing rights to a drug in a specific country can make it somewhat more difficult to sell the drug's full rights to a strategic investor down the road but the cash such deals generate help in the meantime.
CF101, Can-Fite's lead drug, is currently being tested in a multi-national Phase IIb study for its therapeutic activity in the treatment of rheumatoid arthritis and in two Phase IIa studies: one for the treatment of psoriasis and the other for dry eye syndrome. Kwang Dong is among the largest pharmaceutical companies in Korea and is highly experienced in introducing drugs, originating from foreign sources, into Korea.
Can-Fite was founded on the basis of scientific findings made by Prof. Pnina Fishman and focuses on the development of molecule-based drugs that bind to receptors of cancerous or inflammatory cells and inhibit their development.
There are currently two drugs in Can-Fite's pipeline - CF101 and CF102.
CF101 is being studied for the treatment of rheumatoid arthritis, dry eye syndrome, and psoriasis. Can-Fite develops CF102 for the treatment of liver conditions, including liver cancer, hepatitis infections and liver tissue regeneration.
Published by Globes [online], Israel business news - www.globes-online.com - on December 22, 2008
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