TaiwanJ Pharma out-licenses liver disease candidate in Asia

TaiwanJ Pharmaceuticals (6549: TWO) has signed a $26 million contract with China-based NewSoara Biopharma to license out its drug candidate JKB-122 for further development in Asia, with the news lifting the Taiwanese specialty firm’s share price 6.4% to 14.89 TW$.

TaiwanJ notes that its JKB-122 is an effective Phase II non-alcoholic fatty liver disease (NAFLD)/non-alcoholic steatohepatitis (NASH) drug candidate. NewSoara Biopharma, known for its capability of drug developments, will be responsible for the clinical development and market commercialization of JKB-122 in Asia, except Taiwan.

According to the agreement, TaiwanJ will receive $2 million of upfront and up to $24 million of milestone payments, which will be paid when each milestone in the development and commercialization process is achieved. The two companies are also working together to conduct preclinical research for JKB-122's second generation compound JKB-133. In addition, TaiwanJ will maintain its right of global clinical development and subsequent worldwide market commercialization.