28th Nov 2019 12:02
(Alliance News) - Shares in Immupharma PLC trebled on Thursday following the announcement of an exclusive licence & development agreement with Avion Pharmaceuticals for Lupuzor, with Avion to fund a new phase 3 trial of the drug and commercialise it in the US.
Shares in Immupharma were more than three times higher on Thursday morning at 22.05 pence versus a Wednesday closing price of 7.05p.
Lupuzor is Immupharma's lead compound and is intended to treat the incurable autoimmune disease lupus, which causes join, skin, and organ inflammation. It also has the potential to treat other autoimmune diseases.
In addition to granting Avion the exclusive rights to Lupuzor in the US, the two firms have also signed a trademark licences agreement which lets Avion used various trademarks connected to developing, manufacturing, and commercialising products under the licence & development deal.
Avion and Immupharma are to co-develop Lupuzor so that it can be marketed and registered in the US, as well as in Europe and elsewhere. Avion, however, will commercialise Lupuzor for the US exclusively, including as a treatment for conditions other than lupus.
Outside of the US, Immupharma will still have the right to commercialise the drug directly or with partners.
Further, a new phase 3 trial of Lupuzor in lupus patients is to commence in 2020, once the trial design has been agreed by the two companies and the US Food & Drug Administration. Avion will fund the full expected costs of the trial, up to a maximum of GBP25 million.
Immupharma will receive milestone payments totalling up to USD70 million under the deal, with USD5 million to be paid once Lupuzor gets regulatory approval in lupus and then USD65 million more due if sales targets are met. For every approval for Lupuzor in a condition other than lupus, Avion will pay Immupharma USD5 million more.
Further, Immupharma will get tiered double-digit royalties of up to 17% based on annual US sales targets of the drug. Avion has the right to use relevant trademarks in its development, manufacture, and commercialisation of Lupuzor.
Immupharma Chief Executive Dimitri Dimitriou and Chief Scientific Officer Robert Zimmer said in a statement: "We are delighted to be entering into this partnership with Avion, a company which has a strong track record within late stage clinical development and commercialisation of products within the US, the largest market for lupus patients.
"Importantly, Avion's specialist sales team is well respected within the rheumatologist community, whose focus is on prescribing safe and efficacious treatments for auto-immune diseases such as lupus. This makes it a perfect fit for Lupuzor. We look forward to a long and successful relationship with the Avion team and look forward to sharing updates on progress with shareholders over the next period."
By Anna Farley; [email protected]
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