Drug development firm, ImmuPharma (AIM:IMM) , informed investors on “positive and proactive progress” following the group’s partnership with Avion Pharmaceuticals announced in November last year.
In a morning statement, the London-listed group outlined intentions for a second phase III trial of Lupus drug, Lupuzor™, which it anticipates to get underway ‘as soon as possible’ this year.
Avion and ImmuPharma will meet with the FDA during the first quarter of 2020 in order to discuss guidance for an optimised trial of the drug, the statement outlined.
The company noted that ‘positive’ discussions had already taken place with a number of potential commercial partners outside the US.
“We are in a new chapter within ImmuPharma's history, with the investment thesis for the Company and specifically Lupuzor™ being repositioned,” said Dimitri Dimitriou, ImmuPharma's CEO, and Robert Zimmer, President and CSO.
Shares in ImmuPharma were trading 3.33% higher at 15.5p during Thursday trading.
Under the deal with Avion, ImmuPharma will retain all commercial rights to Lupuzor™ outside of the US.
The group will receive up to $70m in milestone payments, the statement reiterated, with $5m due on regulatory approval of the drug, and a further $65 million for reaching sales targets.
In addition, royalties of up to 17% on sales will be received by the AIM-listed company, as well as $5m for the drug’s use in auto-immune indications outside of lupus.
Avion will fund the full cost of the new international phase III trial for Lupuzor™ in lupus patients, based on an agreed level of expected costs up to $25 million, the statement added.
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