Dong-A ST signs equity investment and license agreement with Nasdaq-listed NeuroBo
Dong-A ST has agreed to take a stake in Nasdaq-listed NeuroBo Pharmaceuticals and transfer its treatment candidate for non-alcoholic steatohepatitis (NASH), obesity and type 2 diabetes, the Korean company announced Thursday. .
The deal could make the Korean pharmaceutical company the largest shareholder in the Boston-based biotech company, a clinical-stage biotech company historically focused on therapies for neurodegenerative, infectious and cardiometabolic diseases, which is expected to play a role in the korean society research. and drug development center targeting the global market.
Under the license agreement, NeuroBo will have exclusive worldwide rights to develop and commercialize Dong-A ST’s DA-1241 and DA-1726, which are being evaluated for the treatment of non-alcoholic steatohepatitis (NASH). ), obesity and type 2 diabetes.
Dong-A ST will manufacture clinical supplies and initial commercial supplies of the product at its manufacturing facility in Korea, while NeuroBo will be responsible for global development, regulatory and commercial activities other than for certain Asia-Pacific geographies.
Dong-A ST will receive an initial payment of $22 million in Series A Convertible Preferred Shares, which will automatically convert into NeuroBo common stock, and will be eligible to receive commercial and regulatory milestone payments up to a value of $316 million, depending on the achievement of specific regulatory and commercial changes. Dong-A ST will also be entitled to single-digit royalties on net sales of the two assets.
Dong-A ST will also commit $15 million to fund the assets, subject to NeuroBo’s ability to secure additional funding worth $30 million under the license agreement. NeuroBo plans to raise funds in the capital market next month. Once the financing is finalized, Dong-A ST will invest some 50 billion won ($35.8 million) to secure a 50.8% stake in NeuroBo.
Shares of Dong-A ST edged down 0.18% to 55,800 won in early trading on Friday.
By Chung Seul-gi and Minu Kim
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]