Antibe Therapeutics Inc. and Kwang Dong Pharmaceutical Co. Ltd. signed a licensing deal to develop and commercialize anti-inflammatory drug ATB-346 in South Korea.
Under the agreement, Antibe will get C$13 million in development and commercial milestone payments, including C$1.3 million in up-front payment. The company will also receive a double-digit royalty on the South Korean net sales of the medicine, once commercialized.
ATB-346 is an anti-inflammatory drug being developed by Antibe to prevent ulcers and bleeding in the gastrointestinal tract due to non-steroidal anti-inflammatory drugs. The company has completed a phase 2b gastrointestinal safety study of the drug, in which ATB-346 was shown to be safer for the gastrointestinal tract than naproxen, a nonsteroidal anti-inflammatory drug that is widely used for treating pain but is associated with causing gastrointestinal ulceration and bleeding.
The Toronto-based company intends to begin a phase 2b dose-ranging efficacy study of the drug in September.
MedCI LLC acted as adviser on the transaction.