Cempra out-licenses solithromycin to Toyama Chemical in Japan

USA-based clinical-stage antibiotics developer Cempra (Nasdaq: CEMP) has signed an exclusive license and development agreement for solithromycin with Toyama Chemical, a subsidiary of FujiFilm Holdings in Japan.

Under the terms of the license and development agreement, Toyama will have exclusive rights to develop and commercialize solithromycin in Japan. Cempra will receive an upfront payment of $10 million as well as up to $60 million in milestone payments from Toyama based on the achievement of certain objectives. Tiered royalties that will be adjusted based on sales are expected to be paid to Cempra following launch of solithromycin in Japan. The drug is currently in Phase III testing by Cempra.

"Toyama is a leading antibacterial company in Japan that has experience in developing and commercializing novel antibiotics in Japan, the second largest antibiotic market in the world," said Prabhavathi Fernandes, chief executive of Cempra, noting that Toyama will commit significant resources to initiate clinical development and initiate commercialization activities to bring this important new antibiotic to patients in Japan.