Last checked at 1 Dec 2017 07:00
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Destiny Pharma plc
("Destiny Pharma" or "the Company")
Regional development and commercialisation agreement finalised with China Medical System Holdings Limited
Highlights
· Strategic partnership grants CMS full rights to Destiny Pharma's pipeline of drug candidates in China and certain other Asian countries (excluding Japan)
· CMS will carry out all research and development required, in their territories, and both parties will share data and coordinate development plans
· CMS will be responsible for the commercialisation of the drug candidates in their territories
· Destiny Pharma will make a manufacturing margin on any product the Company supplies and will also receive a commercial milestone payment subject to the applicable sales milestones being met by CMS
· A Joint Steering Committee will be established to coordinate the collaboration
· Appointment of Dr Huaizheng Peng, General Manager of International Operations at CMS, to Destiny Pharma's Board of Directors
· Agreement further validates the potential of Destiny Pharma's novel pipeline and platform technology
Brighton, United Kingdom - 1 December 2017 - Destiny Pharma (AIM: DEST), a clinical stage biotechnology company focused on the development of novel anti-microbial drugs, which address the global problem of anti-microbial resistance (AMR), announces that the outline framework agreement, announced on 4 September 2017, covering a development and commercialisation collaboration agreement with CMS Medical Venture Investment Limited, a wholly owned subsidiary of China Medical System Holdings Limited ("CMS"; HKSE:0867), has now been finalised and signed.
Under the final terms of the agreement, Destiny Pharma will collaborate with CMS, who will have the full rights in China and certain other Asian countries (excluding Japan), to enable the development and commercialisation of the Company's pipeline of drug candidates in the region. The parties will coordinate and share data from their respective clinical studies and Destiny Pharma will benefit from CMS investment in developing the Company's assets in China. Destiny Pharma will also receive a future commercial milestone based on the achievement of sales milestones by CMS and make a manufacturing margin on any product the Company supplies.
Neil Clark, Chief Executive Officer of Destiny Pharma, commented:
"We are pleased to have now finalised and signed this development and commercialisation agreement with China Medical Systems. As a specialty pharmaceutical company based in China, CMS is the ideal strategic partner to help us advance our platform and commercialise potential products in this important region. We look forward to working closely with CMS, in particular, Dr Huaizheng Peng as our newly appointed Non-Executive Director who has a wealth of experience within the global life sciences sector."
Dr Huaizheng Peng, General Manager of International Operations at CMS, added:
"I am excited by this opportunity to work with the Destiny Pharma team to drive forward the development of the Company's portfolio. I believe Destiny Pharma's XF-drug platform offers great potential as a novel approach to tackling the rising global issue of anti-microbial resistance, where there is a recognised unmet need for new effective treatment options."
Board Appointment
Dr Huaizheng Peng, General Manager of International Operations at CMS, will join the Board of Destiny Pharma as a Non-Executive Director, with immediate effect. Dr Peng has extensive and multi-faceted experience in the life sciences sector.
Dr Peng joined CMS in 2011 as a General Manager of International Operations. His current responsibilities at CMS include pharmaceutical asset acquisition, product licensing, international business development, outbound investment and asset management. Prior to 2011, Dr Peng previously served as a Non-Executive Director to CMS for three years.
Prior to joining CMS, Dr Peng worked in London as a partner of Northland Bancorp, a private equity firm, and before that, as the head of life sciences and a director of corporate finance at Seymour Pierce, an investment bank and stockbroker. He also served as a Non-Executive Director to China Medstar, a medical device company, while it was listed on AIM. Earlier in his career, Dr Peng was a senior portfolio manager, specialising in global life science and Asian technology investment at Reabourne Technology Investment Management Limited.
Dr Peng received his Bachelor's degree in medicine from Hunan Medical College (now Central South University Xiangya School of Medicine) in Changsha, Hunan Province, China and he subsequently obtained a Master's degree in medicine from Hunan Medical College. Dr Peng was awarded his PhD in molecular pathology from University College London (UCL) Medical School, London UK, where he subsequently practiced as a clinical lecturer in the Department of Histopathology.
The following information is disclosed pursuant to Schedule Two paragraph (g) of the AIM Rules for Companies. Dr Huaizheng Peng, aged 55, is or has been a director / partner of the following companies / partnerships during the previous five years preceding the date of this announcement:
Current directorships | Past directorships |
Faron Pharmaceuticals Oy | China Medical System Holdings Limited |
Novamedic ASA | |
Helius Medical Technologies | |
Subsidiaries of CMS: CMS Pharma Bridging Pharma Ltd TopRidge Pharma (IE and HK)CMS Medical Venture Investments Limited |
Dr Peng has no beneficial interest in the ordinary shares of the Company.
There is no further information required to be disclosed in respect of the above appointment pursuant to Rule 17 or Schedule 2 (g) of the AIM Rules for Companies.
For further information, please contact:
Destiny Pharma
Neil Clark, CEO
Simon Sacerdoti, CFO
pressoffice@destinypharma.com
+44 (0)1273 704 440
FTI Consulting
Simon Conway / Victoria Foster Mitchell / Hanna Skeppner
destinypharma@fticonsulting.com
+44 (0) 20 3727 1000
Cantor Fitzgerald Europe (Nominated Adviser and Broker)
Philip Davies / Will Goode, Corporate Finance
pdavies@cantor.co.uk
+44 (0)20 7894 8337
About Destiny Pharma
Destiny Pharma is an established, clinical stage, innovative biotechnology company focused on the development of novel medicines that represent a new approach to the treatment of infectious disease. These potential new medicines are being developed to address the need for new drugs for the prevention and treatment of life-threatening infections caused by antibiotic-resistant bacteria, often referred to as "superbugs". Tackling anti-microbial resistance has become a global imperative recognised by the WHO and the United Nations, as well as the G7 and the G20 countries. For further information, please visit https://www.destinypharma.com
About China Medical System Holdings Limited
CMS is a specialty pharmaceutical company based in China, focusing on marketing, promotion and sales of prescription drugs and other medicinal products to all therapeutic departments in hospitals nation-wide. CMS builds up its product portfolio for its target markets by asset acquisition, equity investment, licensing-in and distribution partnership on the global basis as well as in-house R&D. It is publicly traded on the Hong Kong Stock Exchange (867.HK) with a market capitalisation of approximately HK$39.9 billion (c. £3.8billion) as at 28 November 2017.