On April 7, 2022 Propella Therapeutics, Inc. ("Propella"), a private, clinical-stage biopharmaceutical company developing best-in-class oncology therapeutics, and Jiangsu Aosaikang Pharmaceutical Co. Ltd. (ASK Pharm), a research-based pharmaceutical enterprise and leading manufacturer in PPI and oncology medications, reported that the companies have entered into an exclusive licensing agreement for CGS-200-5, a clinical-stage topical treatment that is being developed for the treatment of pain in patients with moderate to severe osteoarthritis (OA) of the knee (Press release, Propella Therapeutics, APR 7, 2022, View Source [SID1234611594]). Under the terms of the agreement, ASK Pharm will have exclusive rights to develop, manufacture and commercialize CGS-200-05 for the Greater China region. As part of the agreement, Propella will receive an upfront payment and is entitled to receive regulatory and sales milestones, as well as royalties on future product sales. In a prior Phase 2 study (NCT#:03528369), four once-daily applications of CGS-200-5 reduced pain by 50% for 90 days in patients with moderate to severe OA of the knee.

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"We are pleased to enter this licensing agreement with Jiangsu Aosaikang Pharmaceutical," said William Moore, Ph.D., President and CEO of Propella Therapeutics. "Today’s announcement reflects our strategy to partner non-oncology pipeline assets with leading companies who have the expertise to maximize their value in select territories. Such agreements also provide Propella with an important source of non-dilutive capital that will help us advance our oncology pipeline, including our lead clinical-stage oncology asset, PRL-02, which is being developed for the treatment of advanced prostate cancer."

"Chronic disease therapeutics are one of ASK‘s four strategic focuses. We are very pleased to have reached this cooperation with Propella," said Mrs. Tingting Song, Chief Strategy Officer of ASK Pharm. "(OA) is one of the most prevalent conditions resulting to disability, particularly in the elderly population in China. CGS-200-5 meets the significant unmet medical need and market demand for topical long-lasting pain relief for knee osteoarthritis (OA). We will work closely with our partner to accelerate the development and commercialization process of CGS-200-5 and provide more effective medicines to patients as soon as possible."

Yafo Capital (Shanghai) acted as sole advisor to Propella on this transaction.

About CGS-200-5

There are currently no approved therapies that effectively manage moderate to severe OA knee pain without significant concerns related to efficacy, tolerability, safety, or addiction potential. Topical CGS-200-5 has clinically been shown to significantly reduce OA knee pain. In a Phase 2 study, CGS-200-5 reduced pain by 50% (based on WOMAC pain score) while demonstrating good safety and tolerability. CGS-200-5 also demonstrated highly durable pain relief. Patients on average reported diminished pain through 90 days, the final time point of the Phase 2 study, following just four consecutive days of topical treatment at study start. Acknowledging the therapeutic potential of topical high-concentration capsaicin, the American College of Rheumatology recently revised its OA treatment guideline to conditionally recommend topical capsaicin for knee OA pain.