D-Pharm Ltd. (TASE: DPRM) has awarded an exclusive development and commercialization license of its epilepsy treatment, DP-VPA, to Jiangsu Nhwa Pharmaceutical Company Ltd. (Shenzhen: 2262), one of China's largest drug companies. The license covers China, Hong Kong and Macau. D Pharm will receive $1 million up front, an additional $1.4 million in milestone payments, plus 5% royalties on sales, if any.
DP-VPA has already completed a Phase IIa clinical trial.
Nhwa develops drugs for treating diseases of the central nervous system. It will finance and conduct Phase I, II, and III clinical trials in China of DP-VPA for epilepsy according to US Food and Drug Administration (FDA) protocols. It will also register the drug with the (SFDA) and marketing it in its territory. D Pharm will have full rights to all data from these clinical trials in order to register the drug in other countries and for other indications.
If Nhwa's annual sales of DP-VPA exceed the target set in the agreement, D Pharm will receive 5% royalties on the difference during the ten years from the start of sales. D Pharm will pay Nhwa royalties of 0.1-1% of DP-VPA sales in other territories.
D Pharm's agreement with Nhwa is its second agreement with a Chinese company mediated by XinTech Ltd., an Israeli company that arranges strategic partnerships between Israeli and Chinese life sciences agreements. In November 2009, D Pharm signed a licensing agreement with Wanbang Biopharmaceuticals Ltd. to commercialize its DP-b99 treatment for acute ischemic stroke.
D Pharm's share price rose 2.9% by midday to NIS 14.36, giving a market cap of NIS 204 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 31, 2011
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