VANCOUVER, BC--(Marketwired - June 03, 2014) - Sirona Biochem Corp. (TSX VENTURE: SBM) (SRBCF) (ZSB.F) announces that Licensee Wanbang Biopharmaceuticals (Wanbang) has begun pre-clinical validation for Sirona Biochem's second generation SGLT2 Inhibitor. To date, Sirona has received Wanbang's licensing fee, the Chinese government's innovation tax application has been approved, Wanbang has successfully hired an expert in pharmacology and toxicity to lead the project and compound synthesis has begun to ensure quantities of the compound will be available for all future clinical trials.
About the License Agreement with Wanbang Biopharmaceuticals
Wanbang Biopharmaceuticals secured the exclusive rights to sell Sirona Biochem's SGLT2 Inhibitor in the People's Republic of China for US$9.5M in upfront and milestone payments with ongoing royalty payments as a percentage of all sales. Wanbang is responsible for funding and managing all clinical validation for the diabetes drug, removing the financial and resource burden for the development of the second generation SGLT2 Inhibitor from Sirona Biochem.
Sirona Biochem will oversee and contribute to the design and execution of all clinical studies and will receive all data generated by Wanbang. Following the successful completion of each study, Sirona will receive a milestone payment from Wanbang and the global value of Sirona's SGLT2 Inhibitor will rise significantly. Sirona has the option of licensing its SGLT2 Inhibitor to the rest of the world at any time; previous transaction values for the first generation of SGLT2 Inhibitors globally include:
- Empagliflozin, one of a two-compound licensing deal between Boehringer Ingelheim and Eli Lilly for at one time payment of EUR300 million and milestone payments of EUR625 million.
- Dapagliflozin (Forxiga®), one of a two-compound licensing deal between Bristol Myers Squibb and AstraZeneca for upfront payment of US$100 million and milestone payments of up to US$1.25 billion
- Bristol Myers Squibb and AstraZeneca expand licensing deal of Dapagliflozin to include Japan; deal estimated to bring more than US$1 billion
About Wanbang Biopharmaceuticals
Wanbang Biopharmaceuticals is a leading pharmaceutical company in China that specializes in research, production and marketing of medicines for diabetes, cardiovascular disease and endocrinology. Among domestic pharmaceutical companies, Wanbang Biopharmaceuticals is one of the largest manufacturers and marketers of a comprehensive portfolio of drugs for diabetes.
Wanbang Pharma is a subsidiary of Fosun Pharmaceutical Group which is listed on the Shanghai stock exchange. Fosun Pharma, one of the major shareholders of Sino Pharma, the largest drug distributor in China, is part of the Fosun Group, the leading non-state owned enterprise group in China which is listed on the Hong Kong stock exchange.
About Sirona Biochem
Sirona Biochem is a cosmetic ingredient and drug discovery company with a proprietary platform technology. Sirona specializes in stabilizing carbohydrate molecules with the goal of improving efficacy and safety. New compounds are patented for maximum revenue potential.
Sirona's compounds are licensed to leading companies around the world in return for licensing fees, milestone fees and ongoing royalty payments. Sirona's laboratory, TFChem, is located in France and is the recipient of multiple French national scientific awards and European Union and French government grants. For more information visit www.sironabiochem.com.
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Sirona Biochem cautions you that statements included in this press release that are not a description of historical facts may be forward-looking statements. Forward-looking statements are only predictions based upon current expectations and involve known and unknown risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of release of the relevant information, unless explicitly stated otherwise. Actual results, performance or achievement could differ materially from those expressed in, or implied by, Sirona Biochem's forward-looking statements due to the risks and uncertainties inherent in Sirona Biochem's business including, without limitation, statements about: the progress and timing of its clinical trials; difficulties or delays in development, testing, obtaining regulatory approval, producing and marketing its products; unexpected adverse side effects or inadequate therapeutic efficacy of its products that could delay or prevent product development or commercialization; the scope and validity of patent protection for its products; competition from other pharmaceutical or biotechnology companies; and its ability to obtain additional financing to support its operations. Sirona Biochem does not assume any obligation to update any forward-looking statements except as required by law.