Can-Fite BioPharma Ltd. (NYSE:CANF) recently received its first payment of $2, 200, 00 from Gebro Holdings GmbH. The biotechnology company a few days ago announced that it has handed over the exclusive right to distribute the lead drug candidate of the company to Gebro through a distribution agreement.
According to the agreement, Can-Fite has given Gebro the right to exclusively distribute Piclidenoson (CF101) drug which is used for treating rheumatoid arthritis and psoriasis in 3 countries from Europe including Austria, Switzerland, and Spain after receiving a receipt of approval. The Gebro distribution agreement adds to the already signed distributions agreements for the same CF101 drug Can-Fit has signed with Cipher Pharmaceuticals for distributing it in Canada for psoriasis and rheumatoid arthritis, and Kwang Dong Pharmaceuticals for its distribution in Korea exclusively for rheumatoid arthritis.
Can-Fite To Receive Additional Payment Of $7, 00,000
The company making advancements in the pipeline of proprietary small molecules drugs effective in addressing liver, cancer, and inflammatory diseases will receive other additional payments of around $7, 00,000 after it achieves certain launch, regulatory, and sales milestones as well as double digit royalty payments on net sales.
According to Dr. Pnina Fishman, CEO Can-Fite, his company is pleased to receive the milestone and upfront payment of $2, 00,000 from Gerbo and is looking up towards future potential milestone payments as they advance Piclidenoson drug through the completion of its current Phase III trials in psoriasis and rheumatoid arthritis. The company has already initiated the enrollment of patients for its Phase III ACRobat trial of Piclidenoson for treating rheumatoid arthritis.
Currently, the therapeutic market of psoriasis and rheumatoid arthritis has the dominance of biological drugs primarily administered through intravenous injection (IV) with potential side effects. Both these conditions are huge unmet need markets and the forecast says that rheumatoid arthritis will reach $35B whereas psoriasis will reach $9B in 2018.
Gebro Pharma is an Austria-based privately owned pharma group. Founded in the late 1940s, the leading group has over 500 employees and its therapeutic focus is a pain with a strong franchise in rheumatology.