Vancouver’s iCo Therapeutics Inc. (TSX-V:ICO) said Wednesday it could receive up to US$32 million in milestone payments from an Israel company that is receiving certain development and commercialization rights to one of iCo’s drug candidates.
iCo granted Immune Pharmaceuticals an option to an exclusive license for the development and commercialization rights to use iCo-008 for treating inflammatory bowel disease and severe asthma.
The deal could potentially provide iCo with an additional means of financing its own trials of iCo-008 for use as an eye treatment.
iCo’s main focus is on advancing its lead program, iCo-007, into phase 2 trials for the treatment of a Diabetes-related eye disease.
Immune Pharma is paying iCo an option fee that will be credited upon conversion against an upfront license fee payment of US$1 million.
In addition to milestone payments, iCo could receive royalties on net sales of products developed by Immune.
iCo is retaining worldwide rights to all uses of iCo-008 in the ocular field.
In September, BIV reported that another one of iCo’s drug candidates, iCo-009, is being fast-tracked by the U.S. Food and Drug Administration for the treatment of a rare and deadly parasitic disease. (See “FDA fast tracks local biotech’s rare disease treatment” – BIV Business Today, September 29.)
Fast-track status is given to products that demonstrate promise for treating rare diseases that don’t provide large commercial returns to drug makers.
iCo’s share price range during the last week: $0.37 to $0.41; 52-week high: $0.69; 52-week low: $0.34.