Kitov is preparing a Phase III clinical trial of the drug - KIT-302.
Kitov Pharmaceutical Holdings Ltd. (TASE: KTOV) has signed a strategic cooperation agreement with Dexcel Pharma Ltd. to develop and produce its treatment for hypertension, KIT-302. Kitov is preparing a Phase III clinical trial of the drug. Dexcel will develop drug's final formulation for the filing of a New Drug Application (NDA) with the US Food and Drug Administration (FDA).
Kitov will pay Dexcel $2 million in cash and $1.5 million in shares to use the company's facilities. The shares will be allotted in three tranches, the first at NIS 0.85 per share, a 27% premium over today's opening price of NIS 0.67, giving a market cap of NIS 37 million. The share price rose 4.5% following the announcement to NIS 0.70.
Dexcel will pay Kitov $500,000 in two equal installments, and will have the first right in global marketing negotiations and commercial production of KIT-302.
Published by Globes [online], Israel business news - www.globes-online.com - on April 1, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014