Marinomed Biotech AG (VSE:MARI), a globally operating biopharmaceutical company, announced today a new collaboration and licensing agreement with Luoxin Pharmaceutical Group Stock Co., Ltd. (Stock Code: 002793.SZ, hereinafter referred to as “Luoxin Pharmaceutical”), one of the leading pharmaceutical companies in China. Luoxin Pharmaceutical will further develop and commercialize Budesolv for the treatment of allergic rhinitis in mainland China, Hong Kong, Macau, and Taiwan. Budesolv, a new formulation of the glucocorticoid budesonide, is the first medication originating from Marinomed’s proprietary Marinosolv platform. Budesolv has successfully completed a pivotal Phase III clinical study, necessary for marketing authorization in Europe. The agreement to commercialize Budesolv in Greater China, is Marinomed’s important next milestone on the communicated development path of the Marinosolv technology platform.
Luoxin Pharmaceutical will co-develop Budesolv for the Chinese markets and will be responsible for clinical development and obtaining the Chinese marketing authorization. This comprises building production capacities, holding the exclusive distribution rights, as well as ultimately being responsible for manufacturing and marketing Budesolv. Under the terms of the agreement, Marinomed will receive an upfront payment of USD 2 million, however, due to legal and corporate finance advisory fees with limited impact on current year’s profit and loss statement. Depending on the achievement of specified development, regulatory and commercial milestones, Marinomed is eligible to receive double-digit million US-Dollar milestone payments as well as royalties on Budesolv sales in Greater China.