Antibe Therapeutics (CVE:ATE), a commercial-stage healthcare company, signed an exclusive long-term license and distribution agreement with Knight Therapeutics (TSE:GUD), a Canadian specialty pharmaceutical company, for Antibe’s anti-inflammatory and pain drugs, ATB-346, ATB-352 and ATB-340, as well as the rights to other, future Antibe prescription drugs.
Antibe granted Westmount, Quebec-based Knight the exclusive commercial rights for Antibe’s drug candidates and other future prescription drugs in Canada, Israel, Romania, Russia and sub-Saharan Africa, the Toronto-based company said in a statement on Monday.
Antibe is entitled to royalties on annual sales, along with the potential for $10mln in payments for sales-based milestones.
Antibe said it considers this a favourable royalty scenario given its competitive anticipated cost-of-goods structure.
The global market for non-steroidal anti-inflammatory and pain drugs is more than US$12 billion annually, despite serious side effects for the currently marketed drugs, especially when taken over the long-term.
Antibe’s drug candidates are novel and patent-protected, and are designed to be safer versions of drugs currently on the market.
Also on Monday, Antibe announced a second closing of the non-brokered private placement of convertible debentures announced October 16, bringing the total proceeds to $2.6mln.
The first tranche of the financing was led by the Bloom Burton Healthcare Lending Trust and the major investor in the second tranche is Knight.
The funds will be used to further the development of Antibe’s novel anti-inflammatory drug pipeline and to fuel the growth of Antibe following its acquisition of an 85% interest in Citagenix Inc.
The Debentures will mature on October 15, 2018, bear interest at a rate of 10% per year, and are convertible at the holder’s option into common shares of Antibe at a price of $0.22 per share.
“The world needs safer anti-inflammatory drugs, and we are pleased to have secured Antibe’s innovative portfolio for our territories, Knight CEO Jonathan Ross Goodman said in the statement.