Can-Fite BioPharma Ltd has signed a Memorandum of Understanding (MoU) with Kwang Dong Pharmaceutical Co., a Korean company, granting Kwang Dong exclusive rights to develop and commercialize the drug CF101 for the treatment of rheumatoid arthritis in Korea. CF101, Can-Fite's lead drug, is currently being tested in multinational 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 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 US$ 1.5M; and royalties on sales.
Additionally, as stipulated in the MOU, Kwang Dong will also purchase equity in Can-Fite in an amount representing 1 per cent of Can-Fite's outstanding share capital at a premium of 50 per cent above market price.
Kwang Dong is among the largest pharmaceutical companies in Korea and is highly experienced in introducing drugs, originating from foreign sources, into Korea.
Dr Pnina Fishman, Can-Fite's CEO, noted that 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," said Dr Fishman.
Can-Fite is an Israeli science-based biopharmaceutical company with the mission to develop novel treatments for autoimmune diseases and cancer.