Faron Pharmaceuticals and a Chinese CMS enter into strategic agreement for the development of Traumakine
Faron Pharmaceuticals and China Medical System Holdings enter into strategic agreement for the development of Traumakine® in China, Hong Kong, Macao and Taiwan.
Faron Pharmaceuticals Ltd, the clinical stage biopharmaceutical company based in Turku Science Park, has announced that it has entered into strategic agreements with China Medical Systems Holding Limited (CMS) and A&B Ltd for the development and commercialization of Traumakine for the treatment of moderate to severe acute respiratory distress syndrome (ARDS).
CMS, a fast growing pharmaceutical company listed on the Hong Kong Stock Exchange has acquired exclusive assets and rights for the development and commercialisation of Traumakine in China, Hong Kong, Macao and Taiwan. A&B Ltd., an investment and development company based in Hong Kong and owned by Dr. Lam, CEO of CMS, makes a simultaneous strategic €5 million equity investment in Faron. Dr. Huaizheng Peng, Head of International Business at CMS, will join the Faron Board.
First Europe, then Asia
Faron’s lead drug candidate Traumakine, is entering a pan-European Phase III trial in 2015 and has the potential to be the first pharmaceutical treatment of moderate to severe acute respiratory distress syndrome, a condition that kills 35-45% of ICU patients despite ventilation assisted supportive therapies.
Positive results from the Phase II clinical trial carried out in the UK demonstrated more than 80% reduction in mortality in the Traumakine treatment group. Following a successful pan-European Phase III trial of Traumakine in Europe, market authorization and licenses are expected to be obtained for the development and commercialization in the Territory. All further development costs in the Territory will be covered by A&B Ltd.
Markku Jalkanen, CEO of Faron Pharmaceuticals, said: “We are very pleased to enter this collaboration with CMS, which has vast and long term experience in the Chinese market and is today focusing more and more on products with high unmet medical need. We also welcome Dr. Peng to the Board and look forward to benefiting from his expertise as we advance our drug pipeline.
Commenting on the announcement, Dr. Lam Kong, CEO of CMS, said: “It’s a pleasure for CMS to establish a strategic relationship with Faron, which is a company with high-level expertise in pharmaceutical research and development. ARDS is a severe acute disease that causes huge damage to patients. We believe, once it is launched, Traumakine can offer significant life saving benefits.”
This is the second agreement Faron has entered for the development and commercialisation of Traumakine in Asia. In 2011, Faron also entered into an agreement with Japanese pharmaceutical company Maruishi, which has licensed the rights to develop and commercialise Traumakine in Japan.
Faron Pharmaceuticals, Ltd. is a late clinical stage drug development company based in Turku, Finland. Faron has three major drug development projects focusing on acute lung injury, cancer growth and spread, and vascular inflammatory diseases. Faron’s lead product Traumakine to treat lung inflammation in ARDS patients is moving to a pan-European pivotal Phase III study in 2015. Faron has a pipeline of early stage assets including pre-clinical anti-Clever-1 antibody program on tumour immunity (Clevegen), Faron’s second drug development project.