Kiora Pharmaceuticals has licensed KIO-401, a late-stage oral small-molecule drug candidate designed to protect nerve cells, from Japan’s Senju Pharmaceutical. The deal gives Kiora exclusive rights to develop and commercialize the drug across much of the world for ophthalmology, while Kiora takes responsibility for the program’s development costs and decisions.
The agreement also covers development and commercialization of a companion diagnostic for glaucoma. It took effect on October 5 and was signed on October 23.
Key details
- Rights and territory: Kiora received an exclusive, sublicensable license to develop, manufacture and commercialize KIO-401 in the licensed territory. The territory excludes certain specified countries, including countries in Asia; the announcement does not list them.
- Development responsibility: Kiora will control development of KIO-401 in ophthalmology in the territory and pay the associated costs. Its decisions are to take account of Senju’s technology and relevant regulatory, clinical and commercial considerations.
- Payments to Senju: Kiora will pay $3.5 million upfront. It will also pay an amount in the low tens of millions of dollars after technology transfer is completed; some of that payment may be credited against future milestone payments.
- Milestones and royalties: Senju could receive up to $168.5 million in additional payments tied to regulatory and commercial milestones, plus royalties in the single-digit percentage range on KIO-401 net sales in the territory. Royalties may be adjusted in certain circumstances.
- Termination: Either party may terminate the agreement in its entirety under certain customary circumstances.
What changes
Kiora now holds the licensed rights to advance and commercialize KIO-401 in the covered markets, and it assumes control and the expense of development there. Senju’s potential further compensation is tied to technology transfer, specified milestones and, if the drug is sold, sales-based royalties.