vTv Therapeutics (NASDAQ:VTVT) has sold licensing rights to a rival Chinese biotechnology group Newsoara Biopharma, paving the way for Newsoara to develop and commercialize its PDE4 Inhibitor program, which addresses inflammatory diseases, across China and much of the rest of Asia.
The clinical biopharmaceutical company's main PDE4 inhibitor is called HPP737; it aims to treat respiratory illnesses such as chronic obstructive pulmonary disease (COPD) and other inflammatory diseases.
Under the deal’s terms, Newsoara will develop HPP737 and market it in China, Hong Kong, Macau, Taiwan, Thailand, Vietnam, Indonesia, Cambodia, Laos and South Korea.
The tie-up is being applauded by investors, who sent vTv shares up 21.6% to US$2.02 in afternoon trade.
“With this partnership, we hope to develop a new treatment for inflammatory diseases, including COPD, which is one of the major health care burdens in China, with over eight percent of the country’s adult population suffering from the disease and limited safe and effective treatment options available,” said Dr Li, chief executive of Newsoara.
In return for these licensing rights, vTv Therapeutics will receive an undisclosed upfront payment and be eligible for development and commercialization milestone payments as well as sales royalties.
“This represents our second partnership to introduce potential new therapies into the China market which speaks to the importance of that market,” said Steve Holcombe, chief executive of vTv Therapeutics.
vTv has a pipeline of drug candidates led by programs for the treatment of Alzheimer’s disease and diabetes as well as the treatment of inflammatory disorders.