[THE INVESTOR] Dong-A ST (000640) said on Jan. 28 it has signed a license deal with NeuroBo Pharmaceuticals to grant the US firm exclusive rights to develop and commercialize its herbal drug candidate DA-9801 for diabetic neuropathy.
Under the contract, Dong-A ST will received upfront payment of US$2 million and a 5 percent stake in NeuroBo Pharmaceuticals.
The US biotech firm also agreed to pay Dong-A ST up to US$178 million milestone payments and additional sales-tied royalties if the drug candidate clears clinical and commercial milestones.
Dong-A ST completed phase 2 clinical studies of DA-9801 in patients diagnosed with Type 1 or Type 2 diabetes in 2015.
By Park Han-na (
hnpark@heraldcorp.com)