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- SUDA Pharmaceuticals (SUD) has entered an exclusive licence agreement with Mitsubishi Tanabe Pharma Korea for its ZolpiMist insomnia spray
- This agreement covers the exclusive 10-year distribution and supply of ZolpiMist in South Korea
- SUDA is set to receive up to $500,000 in upfront and milestone payments over the course of the agreement, and can thereafter enjoy a 12 per cent royalty payout
- ZolpiMist is SUDA’s oro-mucosal spray used to treat insomnia
- The spray works as it’s absorbed into the bloodstream, slowing down attention, motor and visual scanning skills
- SUDA is down a slight 2.33 per cent on the market and shares are trading for 4.2 cents each
SUDA Pharmaceuticals (SUD) has entered an exclusive licence agreement with Mitsubishi Tanabe Pharma Korea (MTPK) for its ZolpiMist insomnia spray.
Under the agreement, SUDA is set to receive up to $500,000 in upfront and milestone payments and can thereafter enjoy a 12 per cent royalty payout as ZolphiMist is rolled out in South Korea.
MTPK is a subsidiary of Mitsubishi Tanabe Pharma Corporation (MTPC), a Japanese pharmaceutical company.
The company’s agreement with SUDA covers the exclusive 10-year distribution and supply of ZolpiMist across South Korea.
Through the contract, SUDA will receive an upfront payment of US$100,000 and another US$100,000 milestone payment if MTPK obtains regulatory approval.
The company will also receive a commercial milestone payment of as much as US$300,000 if MTPK achieves sales targets.
On top of that, SUDA will receive a 12 per cent royalty based on the net sales of the product.
Both companies will work together under a joint development committee and a joint management committee to coordinate activities to ensure the success of the product.
“We are very excited with the prospect of this partnership which will expand ZolpiMist coverage across Asia with MTPC,” David Phillips, SUDA’s Executive Director of Business Development commented.
“By completing another agreement with the MTPC, we continue to make progress with the build-out of the commercialisation of ZolpiMist into Korea and are in discussions with multiple parties for other territories also,” he added.
ZolpiMist is SUDA’s FDA (Food and Drug Administration) approved oro-mucosal spray used to treat insomnia.
As it is sprayed in the mouth or on the cheeks or tongue, ZolphiMist slows attention, motor and visual scanning skills to help patients get to sleep.
Trials have shown the spray is more effective in putting patients to sleep than traditional methods, such as taking Ambien.
10 milligrams of spray outperformed the pill in eight minutes, while five milligrams of spray outperformed the pill by six minutes.
SUDA is down a slight 2.33 per cent on the market and shares are trading for 4.2 cents each at 12:57 pm AEDT.
