Hanmi Pharmaceutical said on the 29th that it signed a contract to transfer Encequidar, an oral conversion technology that turns injectables into pills, to Gilead Sciences in the United States. The related technology was first transferred to U.S.-based HealthHope Pharma (HHP), and this time all three parties participated in the contract together.
The aggregates of the upfront payment and milestones (stage-based technology fees) total $34.5 million (about 48.3 billion won). Of this, the non-refundable upfront payment is $2.5 million (about 3.5 billion won). The milestone fees are set so that up to $32 million can be received upon meeting development and sales performance conditions.
Encequidar is a formulation created with Orascovery, a drug delivery technology developed by Hanmi Pharmaceutical to convert existing injectables into oral formulations. It helps drugs be absorbed well, making it possible to turn injectables into pills.
Under this contract, Hanmi Pharmaceutical and HHP will grant Gilead exclusive rights to Encequidar in the antiviral field. The two companies plan to participate as core partners in the project by supplying Encequidar active pharmaceutical ingredient (API) and finished goods and sharing technical know-how.
Hanmi Pharmaceutical and HHP are to receive an advance payment and milestone fees for each stage of development, approval, and sales in accordance with the contract. They also plan to receive separate royalties (running royalties) on future product sales.
Dennis Lam, founder of HHP, said, "We are pleased to announce this technology export contract with Gilead and Hanmi Pharmaceutical," adding, "This contract is a case that shows the potential of converting injectables to oral formulations in various fields, with Encequidar as a first-in-class P-gp inhibitor."
Park Jae-hyun, CEO of Hanmi Pharmaceutical, said, "This contract is an important achievement that proves Hanmi Pharmaceutical's formulation technology and research and development capabilities in the global market," adding, "Through cooperation with global partners, we will enhance patients' access to treatment and create growth opportunities that further accelerate innovative outcomes."
In 2011, Hanmi Pharmaceutical exported the technology for Oraxol, an oral anticancer drug applying Encequidar, along with the technology to Athenex in the United States, but the rights were transferred to HHP and others after Athenex's bankruptcy. HHP is currently conducting Oraxol clinical trials in the United States, Hong Kong, and New Zealand since June this year, and plans to roll out in Europe, Asia, and the U.S. markets in sequence.