Fera will initially focus on the signs and symptoms of osteoarthritis. The company aims to seek advice from the United States Food and Drug Administration with respect to the further clinical work needed before submitting a new drug application for naproxcinod.
Nicox already completed a clinical program for naproxcinod in osteoarthritis, including three phase 3 trials with more than 2,700 patients.
The deal requires Fera to pay about $35m in sales-based milestones to Nicox. It also includes 7% royalties depending on net sales of naproxcinod in the US.
Fera will fully finance and undertake all clinical development, manufacturing and commercialization activities.
The deal includes all indications excluding ophthalmology-associated conditions and duchenne muscular dystrophy. Nicox will retain all rights for naproxcinod outside of the US.
Fera will receive an undisclosed royalty if naproxcinod is approved and commercialized in any indication in any ex-US territory.
Nicox executive vice president of corporate development Gavin Spencer said: "Following our alliance with Bausch + Lomb for latanoprostene bunod, this transaction further underscores the value of Nicox’s nitric oxide-donating pipeline.
"If approved and commercialized, naproxcinod could become a meaningful treatment option for patients suffering from osteoarthritis and could bring royalties to Nicox that would provide important non-dilutive cash flow to support the development of our ophthalmology pipeline."