Investors have confirmation of a new distribution agreement for Melbourne-based Medical Developments International (ASX:MVP), makers of the painkiller commonly known as the 'green whistle', boosting the company's share price by over 12 per cent.
The company announced it has entered an exclusive distribution and license agreement with Daiichi Sankyo for Penthrox in China, Thailand and Vietnam.
Penthrox, is a fast onset, non-opioid analgesic indicated for pain relief by self-administration in patients with trauma and those requiring analgesia for surgical procedures.
Under the terms of the agreement, Daiichi Sankyo will pay MVP up to US$32.5 million US dollars, including US$15 million upfront, and sales-based milestone payments.
MVP will fund the China approval process up to US$10 million and will own the intellectual property generated from the program.
According to MVP CEO, John Sharman, “We are delighted to partner with Daiichi Sankyo, one of Japan’s biggest pharmaceutical companies. Daiichi Sankyo shares our vision for the potential of Penthrox in China, Thailand and Vietnam.”
He continued, “Acute pain in trauma and minor surgical procedures is undertreated in the Chinese healthcare system. MVP believes there is an important place for Penthrox in pain management in China. Penthrox, with its fact acting, non-addictive, non-opioid characteristics will be an important tool for pain management in the Chinese, Vietnamese and Thai markets.”