E Rexahn's Deal With China For RX-3117 Candidate Moves It Back On The Right Track

Rexahn Pharma (RNN) just announced that it had formed a partnership deal with BioSense Global LLC. This is a very important partnership for Rexahn, which has been struggling quite some time with some of its other clinical cancer products. I believe that this collaboration is a very good turning point for the biotech, because it gets assistance from BioSense to get the product to the greater China territory. In addition, it provides some cash milestones so that Rexahn can possibly avoid having to dilute shareholders at an earlier period than expected. Even better, the deal will allow new cancer target indications for RX-3117. In other words, target indications that Rexahn itself is not targeting. 

The premise of the agreement is that BioSense obtains the exclusive licence to develop and commercialize RX-3117 in Greater China. That's a good thing, because Rexahn will not need to provide any funding for clinical trials costs for these studies done by BioSense. Rexahn is expected to receive an upfront payment in consideration for this deal, however, for the time being the exact amount has not yet been revealed. What is known is that it will be eligible to eventually receive $226 million in regulatory and commercial milestone payments for products generated from RX-3117. The biotech will also obtain low to double digit royalty for sales of any of these products as well. Both companies will look to explore the drug in pancreatic cancer and other cancer indications. However, BioSense is looking at initiating phase 2 studies for up to three different cancer indications. 

RX-3117 has made significant progress on its own in the clinic. Rexahn currently has two ongoing phase 2 studies using RX-3117. These two phase 2 studies are using the drug to treat metastatic pancreatic cancer and advanced bladder cancer. I like that it is going after both of these indications, because they deal with populations with a high unmet medical need. Despite advancements in science, those who are diagnosed with pancreatic cancer still don't have a highly effective treatment option. To date, standard of care for patients with pancreatic cancer treatment involve different types of chemotherapy. Sometimes it is even given in a mix of chemotherapy agents. 

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Disclosure: no position in any stocks mentioend

no position in any stocks mentioned

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Gil Richards 1 year ago Member's comment

China is where it's at!

David M. Green 1 year ago Member's comment

Sounds promising.