MOLOGEN Licenses DNABarrier to Chinese Biotech-Corporation

12.07.2004

MOLOGEN announces licensing of its dSLIM-based DNABarrier II to the Chinese biotechnology corporation Starvax Inc. of Beijing, PR China. DNABarrier II is one of three applications currently under development, using the dSLIM immunomodulator technology, developed and patented by MOLOGEN. Following signature of a detailed term sheet, a first installment of 0.4 Mill. Euro was received by MOLOGEN. This licensing deal is for MOLOGEN the first financially important outcome from strategic alliances with biopharmaceutical companies and investors in China.

The license embraces the use of DNABarrier II in treatments of several major cancers, among others colorectal carcinoma (bowel-cancer). It covers the pharmaceutical markets of China and other East Asian countries, including South Korea and Japan. MOLOGEN retains the exclusive rights for Europe, USA and the rest of the world. Under the licensing deal MOLOGEN will receive a total of 1 Mill Euro in upfront payment in two more installments. Furthermore, milestone payments, differentiated by countries, were agreed on, during progress of clinical co-development and regulatory approval. For royalty payments to MOLOGEN on product revenues, rates are also differentiated by countries, and are highest for Japan.

MOLOGEN will medium term invest 0.8 Mill Euro into the clinical development program, performed in China according to international standards. Therefore, Starvax will provide MOLOGEN with all data and knowledge derived from the clinical development program. MOLOGEN intends to build additional deals with European and US companies, based on the results of this German-Chinese partnership.

Prof Burghardt Wittig, CEO of MOLOGEN, said: "This is one of the first international biotech-biotech deals involving a Chinese company. Still the Chinese pharmaceutical market in financial terms is a small fraction of the world market. By the time the potential products against cancer will be ready for marketing in China, market size is estimated to have tripled. For MOLOGEN this deal is significant in terms of future access to these rapidly growing Chinese and Asian markets. At the same time we will gain clinical data that will multiply for MOLOGEN the value and probability of a licensing deal with western pharmaceutical companies involving DNABarrier II.

Starvax, Inc. is a biotech start-up company in Beijing, founded by several scientists and managers who returned from the USA to P.R. China. They have many years of experience in research and development with the world's leading biotech companies. Starvax has a very strong financial backup from its lead investor Bright Oceans Corporation (BOCO), a leading high-tech company in China.

https://www.bionity.com/de/news/38462/mologen-licenses-dnabarrier-to-chinese-biotech-corporation.html