(Alliance News) - Diurnal Group PLC on Wednesday said it has entered into an exclusive licensing agreement for paediatric adrenal insufficiency drug Alkindi with specialty pharmaceutical company Citrine Medicine Inc.
The Cardiff, Wales-based pharmaceutical company focused on hormonal diseases stated under the terms of the agreement, it will receive a non-refundable upfront payment of USD500,000 as well as USD12.8 million in additional cash payments upon achievement of certain regulatory milestones and sales milestones. It noted it will receive tiered royalties on sales ranging from low to mid double-digits.
Citrine Medicine - which operates in China, Hong Kong, Taiwan and Macau - will be responsible for obtaining registration for Alkindi as a treatment for paediatric patients in China and for all commercialisation activities, including pricing and reimbursement. It will initially use product from Diurnal's European supply chain, with an option to establish its own supply chain in China in the future.
"With the increased focus from the Chinese health authorities on rare diseases in the past few years, we are delighted to have identified Citrine as a partner for Alkindi in China. We believe they are well positioned to maximise the value of Alkindi in this key market. If approved, Alkindi will provide a major breakthrough in China as the only licensed treatment specifically designed for use in children with congenital adrenal hyperplasia, where there is a significant unmet patient need," said Diurnal Chief Executive Martin Whitaker.
Shares in Diurnal were trading 8.2% higher at 59.48 pence each on Wednesday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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