Moberg Pharma enters deal with Taisho for MOB-015 in Japan

Sweden’s Moberg Pharma (OMX: MOB) has entered into a license agreement granting Japan’s Taisho Pharmaceutical (TYO: 4581) exclusive Japanese rights to MOB-015, a new topical treatment of onychomycosis based on Moberg's patented proprietary formulation of terbinafine.

Taisho will fund and conduct the development and registration activities in Japan, and will be marketing, distributing and selling MOB-015 in Japan upon completion of registration.

Under the terms of the license agreement, Moberg Pharma – whose shares shot up 8.7% at 73.60 Swedish kronor this morning following the announcement late Monday - provides supply for the product and provides Taisho with know-how and documentation from its international development program. Moberg Pharma is eligible to receive up to approximately $50 million in milestone payments, including $5 million paid at signing. The majority of the milestone payments are contingent on sales targets, with the balance contingent on development and regulatory milestones.  Moberg Pharma will also receive supply fees including royalties.