D-Pharm Ltd. (TASE: DPRM), which is developing a stroke treatment drug, has signed a partial licensing agreement for its product with Chinese company Wanbang Biopharmaceuticals, a subsidiary of Fosun International Ltd. (HKSE: 656), one of China's largest pharmaceutical companies.
Under the terms of the agreement, Wanbang will receive an exclusive license for development, conducting trials, manufacturing pharmaceuticals from active agents, registration, sales and distribution in China of DP-b99, D-Pharm's lead product for treating strokes.
In return Wanbang will finance D-Pharm's Phase III trial in China and in addition will pay milestone payments of up to $25.5 million with the first payment due in the coming days. If and when the product is marketed in China, D-Pharm will be eligible for significant royalty payments on sales of the product.
The Phase III trial, which will include 450 patients, will be supervised by the US Food and Drug Administration (FDA). D-Pharm will be able to use the results as part of its multi-center FDA trial - the final trial required by the FDA before marketing approval is considered.
D-Pharm's main shareholders are Clal Biotechnology Industries Ltd. (TASE: CBI) (46.5%), Care Capital (8.4%), Israel Health Care Ventures (7.45%), and Pitango (7.45%).
D-Pharm's share rose 0.1% to NIS 16.89 today, giving a market cap of NIS 590 million, compared with NIS 120 million before money three months ago during its IPO.
Published by Globes [online], Israel business news - www.globes-online.com - on November 8, 2009
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