Windtree Therapeutics, a biotechnology company focused on developing aerosolized KL4 surfactant therapies for respiratory diseases, and Lee's Pharmaceutical (HK) Limited, a wholly-owned subsidiary of Lee's Pharmaceutical Holdings Limited, have entered into an exclusive license and collaboration agreement for the development and commercialization of KL4 surfactant products in select Asian markets using Windtree's proprietary KL4 surfactant and aerosolization technologies. The agreement includes AEROSURF as well as the non-aerosol products SURFAXIN (approved in the US) and SURFAXIN LS (an improved lyophilized formulation of SURFAXIN). Also, Windtree has granted Lee's an exclusive license to manufacture KL4 surfactant in China for use in non-aerosol surfactant products in the licensed territory.
"China and the surrounding Asian markets represent a significant market opportunity for Windtree and our KL4 surfactant technology. Through our collaboration with Lee's, we will be able to access and grow the KL4 surfactant opportunity outside of the US and pursue development of AEROSURF and our other KL4 surfactant products with a proven partner," commented Craig Fraser, president and chief executive officer of Windtree Therapeutics. "I am excited about the potential of AEROSURF to both transform and expand the management of respiratory distress syndrome (RDS) worldwide and this collaboration with Lee's will significantly enhance our development and realization of this goal."
"We are delighted to announce this collaboration with Windtree. Given the size of the RDS population and as a high growth, current top surfactant market, we are enthusiastic about our prospects to develop and market AEROSURF and the other KL4 surfactant products for our premature infants with RDS," commented Dr. Benjamin Li, chief executive officer of Lee's Pharm. "We also see real potential to address other acute pulmonary diseases and conditions and plan to explore these opportunities with Windtree. Together with the Group's other assets, this partnership will strengthen the Group's position in neonatal critical care."
In anticipation of finalizing the agreement, Lee's Pharm invested $2 million in Windtree's February 2017 private placement offering. Under terms of the license agreement, Windtree will receive an upfront license fee of $1.0 million and will also be eligible for up to $37.5 million in contingent clinical, regulatory and commercialization milestone payments and escalating high single digit to mid-teens percentage royalties across all products. In addition, Lee's will be responsible for all development costs in the licensed territory.