Drug development company Can-Fite BioPharma Ltd. (TASE:CFBI) announced today that Japanese drug company Seikagaku Corporation (TSE: 4548) (SKK), which holds the exclusive license to market its CF101 molecule, will shortly commence a Phase I clinical trial to test CF101 in the treatment of rheumatoid arthritis. Can-Fite will receive a payment of $1 million from SKK once the trial begins, under an agreement between the two companies in 2006.
The agreement provides that Can-Fite will receive a total of $19.5 million from SKK, depending on the achievement of the milestones agreed on by the two companies until the drug has sales in Japan. The company will also be entitled to receive royalties on SKK's sales of the drug on the Japanese market.
Can-Fite said that so far it had received $6 million out of the agreed sum. The company added that a number of SKK teams have been conducting preclinical trials of CF101 to ensure the process complies with Japan's stringent regulatory requirements before proceeding to the Phase I trial.
SKK will be entitled, under the agreement with Can-Fite, to produce and sell CF101 as a treatment for autoimmune inflammatory diseases (except for indications relating to eye diseases).
Can-Fite added that CF101 is currently in the advanced stages of a multi-center Phase IIb trial to demonstrate its efficacy.
Can-Fite's share rose 3.5% in morning trading on the Tel Aviv Stock Exchange (TASE).
Published by Globes [online], Israel business news - www.globes-online.com - on August 17, 2008
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