Australian biotech SUDA (ASX:SUD) has entered a new licence and supply agreement with Teva Pharmaceuticals.
Under the agreement, SUDA has granted Israel-based Teva, a leading global pharmaceutical company and the world’s largest maker of generic medicines, licence to ZolpiMist in Brazil, Mexico and Chile, together with an 18-month option to license the product in Argentina, Israel and Australia.
ZolpiMist oral spray of zolpidem tartrate is used to treat insomnia.
SUDA receives an upfront payment of $400,000 as part of the agreement and is entitled to receive further licence fees, registration and commercial milestone payments of up to $2.3 million.
"In addition, once ZolpiMist is registered for sale in the territory, SUDA will supply the product to Teva and receive a double-digit royalty on net sales less the supply price," said the company.
Teva will assume responsibility for development, regulatory and commercialisation activities for ZolpiMist in the countries. SUDA will supply the product to Teva at cost plus an agreed handling fee. The parties will also establish a Joint Management Committee to grow the commercial opportunity for ZolpiMist.
According to Stephen Carter, CEO of SUDA, “SUDA is committed to its strategy of partnering with leading companies to commercialise its pipeline of novel oral sprays. We are proud to be partnering with Teva, a major pharmaceutical company, to bring ZolpiMist to market in Latin America, Israel and Australia. Teva has the commercial capabilities to take advantage of ZolpiMist’s unique profile within the insomnia market. This agreement is another step towards our goal of bringing this new treatment option to patients in countries beyond the US and Canada."