Pharmaceuticals company iX Biopharma has signed an exclusive license agreement with Seelos Therapeutics for its product, Wafermine.

Under terms of the agreement, iX Biopharma will receive an upfront payment of US$9 million ($12 million) to be satisfied in cash and shares. 

iX Biopharma is also eligible for up to US$239 million in milestone payments upon achievement by Seelos of certain development milestones and product sales thresholds. 

iX Biopharma will also receive double-digit percentage royalties on future net sales of any licensed product. 

In addition, Seelos will fund all future development, manufacturing and commercialisation of the licensed products.

The agreement gives Seelos exclusive worldwide rights for Wafermine except China (including Hong Kong, Macau and Taiwan), and worldwide rights to products incorporating R- and S- enantiomers of ketamine being developed using iX Biopharma’s WaferiX technology. 

See: iX Biopharma signs agreement with China Resources Pharmaceutical Commercial Group to distribute Wafesil in China

iX Biopharma will retain exclusive rights to Wafermine in China (including Hong Kong, Macau and Taiwan).

Eddy Lee, chairman and CEO of iX Biopharma calls Seelos Therapeutics an ideal partner to further his company’s products.

“Licensing our WaferiX-based pharmaceutical drugs to suitable third parties for development and commercialisation is a core strategy to unlock the value of our assets. 

“We are therefore excited that this commercially significant agreement with Seelos is a validation of our ability to deliver on this strategy,” adds Lee.

Prior to the agreement, iX Biopharma had completed Phase 2 clinical studies on Wafermine in the US.

It has also concluded the End-of-Phase 2 meeting with the US Food and Drug Administration (FDA) as well as obtained positive Scientific Advice from the European Medicines Agency (EMA) on the Wafermine programme. 

iX Biopharma last traded at 26 cents before a trading halt was called ahead of this announcement.

Photo: Albert Chua of The Edge Singapore