Dong-A ST Co. has reached a technology transfer agreement for its diabetic neuropathy treatment with an U.S.-based drug maker for up to US$180 million (192.69 billion won).
Dong-A ST announced on January 28 that it has signed a license deal with NeuroBo Pharmaceuticals Inc. to grant the US firm exclusive rights to develop and commercialize its self-developed herbal drug candidate DA-9801 for diabetic neuropathy. Under the agreement, Dong-A ST will receive US$2 million (2.14 billion won) in advanced free and 5 percent in NeuroBo Pharmaceuticals shares. It will additionally gain up to US$178 million (190.55 billion won) payments in prospective milestones from stage-by-stage clinical tests and receive royalty after commercialization.
DA-9801 is a natural diabetic neuropathy treatment that helps relieve pain and generate nerves. Currently, the drug is awaiting phase 3 clinical trials in the U.S. after completing phase 2 clinical trials. NeuroBo will be responsible for the global clinical development, licensing and sales of DA-9801.
NeuroBo Pharmaceuticals was jointly founded by JK BioPharma Solutions, a company specializing in the development of new biopharmaceuticals, and Roy Freeman, a Harvard Medical School neurologist, to develop natural medicine based on neuroscience.
“Dr. Roy Freeman, the founder of Newrobo, is the ideal person to open a new paradigm in the field of natural drugs,” said Kang Soo-hyun, vice president of Dong-A ST. “The company expects that the successful development of Newrobo will accelerate the advancement of Dong-A ST’s natural products into the global market.”