D-Pharm Ltd. (TASE: DPRM) has expanded its commercialization agreement with China's Wanbang Biopharmaceuticals Ltd. for D Pharm's leading product, DP-b99 for the treatment of ischemic stroke. D Pharm will receive $7.65 million in milestone payments under the expanded agreement, $1.15 million of which will be paid during 2012, in addition to the $1 million under the original agreement, signed in November 2011.
The commercialization agreement was expanded to include a license for Wanbang to conduct clinical trials, licensing, marketing and sales in China for a new formulation of DP-b99 that is now under development. The drug, which has US Food and Drug Administration (FDA) Investigational New Drug (IND) designation, is currently undergoing Phase III multinational clinical study.
When D Pharm receives the interim results of the Phase III study, due in February, Wanbang will pay it $650,000, and when D Pharm files its international patent for the new formulation, due in the third quarter, Wanbang will pay $500,000.
D Pharm CEO Dr. Alex Kozak said, "We believe that the expansion of this agreement is another step in our important strategic cooperation in China, and could be a model for establishing similar cooperation agreements in other territories."
D Pharm's share price fell 1.4% by midday to NIS 12.93, giving a market cap of NIS 218 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 10, 2012
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