The milestone payment was triggered when JCR Pharmaceuticals filed a clinical trial notice to the Pharmaceuticals and Medical Devices Agency in Japan to initiate a clinical trial in patients with graft versus host disease (GvHD).
The milestone payment arises from a drug discovery alliance with JCR Pharmaceuticals focusing on the commercialization of Prochymal in Japan for the treatment of patients with GvHD. Under the terms of the collaboration, JCR will bear all costs associated with bringing the drug to market in Japan. Osiris Therapeutics is eligible to receive additional milestone payments of up to $6.5 million, as well as sales milestones and significant royalty payments on sales of the drug in Japan.
Prochymal is currently in Phase III clinical trials for the treatment of GvHD and Crohn’s disease and a Phase II trial for type 1 diabetes.