Phosphagenics signs deal in Japan

Phosphagenics Limited (ASX: POH) has signed a pre-licensing deal with Japan's Nippon Zoki Pharmaceutical covering pain formulation TPM/diclofenac.

The agreement gives Nippon Zoki the right to assess the non-steroidal pain formulation for its fit with the US and Japanese prescription drug markets.

If Nippon Zoki is satisfied following testing, the two companies will negotiate on the terms of a licensing agreement.

The deal marks Phosphagenics' second licensing arrangement for TPM/diclofenac. In November last year, the company revealed it had signed a deal with India's Themis Medicare covering supply of the product to the Indian market.

The exact terms of this licensing deal are under wraps, but Phosphagenics has revealed it will be entitled to “double-digit royalty payments on sales.” Themis is also obligated to launch the product on the nation's over-the-counter market within 12 months of the signing of the agreement.

TPM/diclofenac uses Phosphagenics' Targeted Penetration Matrix (TPM) system to deliver Diclofenac, the main active ingredient in Voltaren.

Phosphagenics has also developed an oxycodone delivery system using the same TPM platform. Last month, Phosphagenics announced trial results demonstrating that the commercial candidate of the TPM/oxycodone patch was 4.5 times more effective at delivering oxycodone into the bloodstream than its original prototype. The company conducted the trial at the Royal Adelaide Hospital, after receiving ethics approval in November.

Phosphagenics (ASX:POH) shares were up 2.4% to a four-year high of $0.215 as of 3:30pm on Monday.