Shield out-licences Accrufer in South Korea

Specialty UK pharma company Shield Therapeutics (LSE: STX) has entered into an exclusive licence agreement for Accrufer/Feraccru (ferric maltol) with Korea Pharma in the South Korea, with the news sending the firm’s shares up more than 7% to 50.90 pence by late morning today.

Alongside the financial terms of the licence, Korea Pharma will undertake and pay for all activities to achieve marketing authorization and then commercialize Accrufer in Korea.

Shield will receive an upfront payment of £500,000 ($693,500) and is eligible to receive a further £1.5 million upon first commercial sale of Accrufer in South Korea. Shield will also receive up to £4.0 million in milestone payments on the achievement of specified cumulative sales targets. For the duration of the intellectual property in Korea, Shield will receive royalties of 15% of net sales of Accrufer. Korea Pharma will be responsible for all clinical and regulatory costs and activities as well as all manufacturing and distribution costs of goods sold in Korea.