Recordati gets European rights to BPH drug from Nymox for $13 million, plus royalties and milestones

Canada-headquartered Nymox Pharmaceutical (Nasdaq: NYMX) saw its shares rocket 61% to $7.20 following the signing last week of a European licensing agreement with Italy’s Recordati (REC: MI) for the development and commercialization of NX-1207, Nymox' Phase III investigational drug currently in clinical development in the USA for the treatment of benign prostatic hyperplasia (BPH).

The deal covers the use of NX-1207 for the treatment of BPH as the initial indication for development and commercialization. Recordati will make an upfront payment to Nymox of 10 million euros (around $13 million); approval and sales milestones payments; and tiered supply and royalty payments of a minimum of 26% to increase progressively up to 40% of total net sales in the case specific contractual conditions are achieved.

Under the terms of the accord, Recordati receives exclusive rights to develop and subsequently market and sell NX-1207 in Europe including Russia and the Commonwealth of Independent States (CIS), the Middle East, the Maghreb area of North Africa and South Africa (ie, a total of 81 countries).