Oramed Pharmaceuticals (Nasdaq:ORMP) announced today that it entered into a distribution agreement for its oral insulin candidate in the Republic of Korea.
The New York-based developer of oral drug delivery platforms entered into an exclusive commercial distribution agreement with Medicox. The agreement covers the distribution of ORMD-0801 in the Republic of Korea (formerly South Korea).
Medicox, a biotech company with partnerships in Korea, received an exclusive license for the candidate. It allows the company to apply for regulatory approval and distribute the oral insulin candidate for 10 years in Korea. Medicox holds responsibility for gaining such regulatory approval in the country.
“This collaboration offers Oramed a great opportunity to participate in the large and growing Korean market and leverages the commercialization strength of our partner, while allowing Oramed to focus on other key markets, including the United States,” said Oramed CEO Nadav Kidron.
The agreement sees Medicox purchase ORMD-0801 at an agreed-upon transfer price. Additional payments to Oramed total up to $18 million in developmental milestones and up to 15% royalties on gross sales. The company received $2 million already.
Oramed currently has its ORMD-0801 candidate in two pivotal Phase 3 studies. It expects top-line results from its first Phase 3 study in January 2023. The company said ORMD-0801 could potentially become the first commercial oral insulin capsule for treating diabetes.
“We are very excited to grow and expand our pharma business by partnering with Oramed to bring a potentially breakthrough treatment to the Republic of Korea,” said Medicox CEO Dae Hwan Oh.