Under the terms of the 2006 agreement between Seikagaku (SKK) and Can-Fite, Can-Fite will receive a consideration of $1 million upon clinical trial initiation.
Under the agreement, Can-Fite will receive an aggregate consideration of up to $19.5 million based on predetermined milestones, until the drug is marketed in Japan; Can-Fite will also receive royalties from the sales of CF101 in the Japanese market.
To date, Can-Fite has received $6 million from this licensing agreement. Since the agreement was signed, SKK has been conducting preclinical trials, in keeping with the strict regulatory requirements in Japan to commence Phase I clinical trial. Under this agreement, SKK is allowed to develop, manufacture and market CF101 in Japan for the treatment of inflammatory diseases.
Pnina Fishman, CEO of Can-Fite, said: “The close cooperation between the two companies for more than two years has promoted effective and targeted drug development and enabled the expansion of our database in support of drug safety and efficacy. We are very pleased with the collaboration that advances the commercial opportunity of CF101 in the highly important Japanese therapeutic market.”