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LONDON (Alliance News) - Pharmaceutical development firm Nuformix PLC said on Tuesday it has expanded its current licensing agreement with partner Newsummit Biopharma for the development of cancer supporting treatment NXP001.
Nuformix will perform an additional pre-clinical study on NXP001 to validate different product opportunities and commercial applications beyond its current purpose as a generic alternative.
The additional study will raise total milestone payments from Newsummit to GBP3 million from GBP2.5 million, with the eventual payment of a second pre-clinical milestone of GBP500,000. All milestone payments are expected to be received during the second quarter of 2019.
The study will be carried out in the first quarter of 2019, and the results will go towards supporting regulatory submissions in China to facilitate market approval of multiple NXP001-derived products.
"The expanded licensing agreement demonstrates NSB's commitment to the commercialisation of NXP001 and its understanding of the commercial opportunity in China. This is a large, untapped and growing market, which in demographic terms has one third of global cancer patients. The milestone payment received validates Nuformix's business model and its commitment to reinvest initial revenues back into R&D, avoiding further fund-raising at this stage whilst maximising the potential value of its cocrystal platform," said Chief Executive Officer Dan Gooding.
Shares in Nuformix were up 3.0% at 2.42 pence on Tuesday.