Kitov Pharmaceuticals (TASE: KTOV; NasdaqCM: KTOV) has announced an exclusive marketing and distribution agreement with Coeptis Pharmaceuticals for the US market. Coeptis will commercialize Kitov’s combination drug, Consensi, intended to treat osteoarthritis pain and hypertension simultaneously.
Kitov's share price added 70.54% today on the Tel Aviv Stock Exchange, bringing the company's market cap to some NIS 70 million. The stock is currently up 56% on Nasdaq.
The agreement provides for total milestone payments from Coeptis to Kitov of $3.5 million, of which Kitov has already received the initial milestone upon execution of the agreement, and additional milestone payments are due upon completion of an agreed Chemistry, Manufacturing, Contol (CMC) plan and upon first commercial sales in the US.
In addition, Kitov will be paid 40%-60% of Coeptis’ net profit on Consensi sales. The agreement is for a term of fifteen years and may be extended for additional two-year terms and includes customary provisions, as well as certain residual rights and obligations of the parties following termination.
Consensi, under patent protection in the US until 2030, is expected to be launched during 2019, and will be the only NSAID whose labeling indicates a reduction of blood pressure and consequent risk reduction of heart attack, stroke and death. For patients, Consensi treats two conditions simultaneously, thereby increasing convenience (one pill instead of two) and may offer lower co-pays. The therapy may contribute to improved patient compliance and improved patient health, thereby lowering overall health care costs.
Kitov’s CEO Isaac Israel said today, “In the US, an estimated 44% of adults have both hypertension and osteoarthritis. Currently, these patients are not well served. We believe that successful commercialization of Consensi in the US will be a transformational value-creating event for Kitov.”
David Mehalick, CEO of Coeptis, said, “We anticipate launching Consensi in the second half of 2019 and expect to have it widely available to the millions of Americans who can benefit from this combination treatment.”
Kitov as founded by its chairman, Paul Waymack, who realized that patients tend to take drugs for pain that raise their blood pressure, while forgetting to take drugs to lower their blood pressure, the benefit of which is not immediately felt. He conceived the idea of remedying this by combining the two drugs in a single pill. While this is not a pharmaceutical breakthrough, the development of such a product in such a way that that it can contain both drugs without them interfering with each other is not simple.
The agreement with Coeptis is Kitov’s third licensing and distribution agreement as part of its worldwide commercialization plans for Consensi. Kitov has previously signed licensing and distribution agreements for the drug in China and South Korea, and Kitov is currently evaluating additional commercialization agreements in major markets worldwide.
Published by Globes, Israel business news - en.globes.co.il - on January 3, 2019
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