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news.Israel-based biotechnology company Can-Fite BioPharma has signed a memorandum of understanding with Kwang Dong Pharmaceutical, a Korean company, granting Kwang Dong exclusive rights to develop and commercialize the drug CF101 for the treatment of rheumatoid arthritis in Korea.
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CF101, Can-Fite’s lead drug, is currently being tested in multi-national Phase IIb study for its therapeutic activity in the treatment of rheumatoid arthritis and in two Phase IIa studies – one for the treatment of psoriasis and the other for dry eye syndrome.
In accordance with the memorandum of understanding (MoU), the two companies intend to proceed toward signing a definitive license agreement by November 1, 2008.
The terms of the license, as specified in the MoU, will include an upfront payment as well as milestone payments to Can-Fite in an aggregate amount of $1.5 million, and royalties on sales. Additionally, as stipulated in the MoU, Kwang Dong will also purchase equity in Can-Fite in an amount representing 1% of Can-Fite’s outstanding share capital at a premium of 50% above market price.
Pnina Fishman, CEO of Can-Fite, said: “Can-Fite will be very pleased to enter into a long-term mutually beneficial relationship with Kwang Dong. We are most honored that such a reputable company has decided to enter into an agreement with us, after having conducted due diligence that convinced them of the potentially large therapeutic benefits of CF101.”