Published Date : Aug 07, 2018
Synergy Pharmaceuticals Inc. has today announced that it has entered into a license agreement with the China-based pharmaceutical company Luoxin, Shandong. The agreement provides Luoxin exclusive rights for developing and commercialize Synergy’s TRULANCE (plecanatide), a drug that is prescribed for treating adults with irritable bowel syndrome with constipation and chronic idiopathic constipation in mainland China, Macau, and Hong Kong.
Under the agreement, Synergy is to receive a sum of $12 million upfront. In case that some commercial and regulatory milestones are achieved, Synergy will also receive an additional sum of up to $56 million in total. Moreover, the company also stands eligible for receiving tiered royalty payments on cumulative net sales. The clinical development part will be led by Luoxin in China. Luoxin will also be responsible for all the expenses and other activities related to regulatory approval, clinical development, and commercialization of the drug in the country.
According to Luoxin, the partnership will allow for the easy availability of the new treatment option for millions of people suffering from with irritable bowel syndrome with constipation and chronic idiopathic constipation in China. The company has, over the years, established a strong portfolio of proton pump inhibitors for the treatment of gastrointestinal diseases. The company is presently undertaking the Phase III clinical trial for a p-CAB inhibitor licensed in from CJ Healthcare, a Korean pharma company; the p-CAB inhibitor, LXI-15028 (CJ-12420), has been recently approved by health care authorities in Korea. Luoxin believes that the new agreement will allow it to further strengthen its portfolio of drugs targeting diseases affecting the digestive system.