Verona Pharma has reached a collaboration agreement with Nuance Pharma, granting the rights to the latter to develop and commercialise its ensifentrine in Greater China.
Under the terms of the agreement, Verona will provide Nuance with exclusive rights to develop and commercialise ensifentrine in Greater China.
Verona will receive an upfront payment of $40m upfront including $25m in cash and equity interest in Nuance Biotech, the parent company of Nuance Pharma, currently valued at $15m.
Also, it is entitled to receive milestone payments of up to $179m in the future, upon achieving certain clinical, regulatory, and commercial milestones, in addition to tiered double-digit royalties on net sales in Greater China.
Nuance is responsible for all the costs related to clinical development and commercialisation in Greater China, including in mainland China, Taiwan, Hong Kong and Macau.
Verona Pharma president and CEO David Zaccardelli said: “We are extremely excited about the formation of this strategic partnership with Nuance Pharma to further the development and future commercialization of ensifentrine in Greater China.
“Nuance Pharma’s highly talented leadership team has deep experience developing and commercializing respiratory products across China and we look forward to working with them to bring ensifentrine to this important market.”
Ensifentrine is an investigational, first-in-class, inhaled, dual inhibitor of phosphodiesterase 3 and 4 (PDE3 and PDE4) enzymes.
The dual inhibition capability of the drug enables it to combine both bronchodilator and anti-inflammatory effects in a single compound.
Verona is currently studying ensifentrine in a global Phase 3 programme in the US, Europe and South Korea, for the treatment of chronic obstructive pulmonary disease (COPD).
Nuance Pharma intends to file a Clinical Trial Application with the China Food and Drug Administration later this year and conduct clinical studies for the treatment of COPD.
Nuance Biotech CEO and co-founder Mark Lotter said: “Ensifentrine is an ideal fit for Nuance Pharma’s portfolio, given our focus on developing and commercializing innovative products for the Chinese market.
“With proven expertise in developing and commercializing global brands, including many leading respiratory products, I have confidence in the Nuance Pharma team’s ability to develop and commercialize ensifentrine in Greater China.”
