Clinical services provider Ergomed (LON:ERGO) has deepened its relationship with US drugs firm CEL-SCI (NYSE:CVM) relating to the Multikine cancer treatment.
The pair has expanded the co-development agreement on Phase 3 head and neck cancer study, with Ergomed's contribution rising from US$10mln to US$12mln in exchange for a single digit percentage of milestone and royalty payments, up to a specified maximum amount.
Considerably more than 500 patients have been enrolled in the world's largest Phase 3 trial for head and neck cancer, Ergomed said.
“At this point in the clinical trial we have decided to increase our investment in the development of Multikine, as we believe that it holds the potential to treat head and neck cancer in a new way. Our potential returns from this agreement will increase in line with our investment,” revealed Miroslav Reljanovic, chief executive officer of Ergomed.
His counterpart at CEL-SCI, Geert Kersten, said the agreement further aligns Ergomed's goals with CEL-SCI's as Ergomed will be rewarded for its US$12,000,000 co-development investment from the commercialisation of the drug.