Faron Pharmaceuticals Ltd (LON:FARN) has hammered out a Korean licensing deal for its flagship drug candidate worth an initial €750,000.
The agreement with a company called Pharmbio also comes with certain undisclosed milestone payments and a one-third share of profits made on the sale of Traumakine.
The Faron breakthrough has been developed to tackle acute respiratory distress syndrome (ARDS), a rare, severe, life-threatening condition for which there is no approved treatment.
Traumakine is in the throes of a pivotal pan-European phase III trial after producing some compelling data earlier in the clinical study process.
Faron chief Markku Jalkanen said the Pharmbio agreement represented “the best way to accelerate the development of Traumakine and create long-term value for our shareholders".
The company is holding onto the rights for the major international territories.
"We are very pleased to have signed this agreement with Pharmbio which represents a great opportunity for Traumakine to enter the Korean market,” he added.
“Given the successful track record of Pharmbio's sales team, achieving a steady 30% sales growth over the last five years, it is an excellent partner for Traumakine in the Korean market.
“This licensing deal follows our growth strategy to partner Traumakine in territories where Faron has limited presence, while maintaining rights in major territories including Europe and North America.”