ANN ARBOR, Michigan — NanoBio Corp. has reached an exclusive licensing deal with pharmaceutical giant GlaxoSmithKline PLC for over-the-counter use of its antimicrobial cold sore treatment drug.
The deal, which could be worth more than $54 million to NanoBio, is a significant milestone for the Ann Arbor company, as it represents its first licensing deal. “It validates our platform technology and enhances our efforts in other dermatology products,” said John Coffey, NanoBio’s vice president of business development.
NanoBio has completed two Phase 2 clinical trials of the drug, now known as NB-001. The company plans to begin Phase 3 testing soon and hopes to have the trial completed sometime in 2011, Coffey said. After that, the company expects to seek clearance from the U.S. Food and Drug Administration to begin sales in the U.S. The drug has been in development since 2002, Coffey said.
The agreement with GSK calls for NanoBio to receive an upfront payment of $14.5 million. Additionally, NanoBio will be eligible to receive milestone payments of up to $40 million, plus single-digit royalties on future sales, according to a statement from the company.
GSK sells a cold sore treatment drug, Abreva, that has more than a 50 percent market share, according to the statement. The deal with NanoBio will strengthen GSK’s leadership in the cold sore category, according to Roger Scarlett-Smith, president of GSK Consumer Healthcare North America.
NanoBio has raised more than $90 million in grants and venture funding since its inception in 2000. In July, the company closed a $22 million Series B round that will fund its operations through 2011.
In addition to NB-001, which treats the cold sore-causing virus herpes labialis NanoBio is working to develop treatments for nail fungus, acne and cystic fibrosis. The treatments are based on the company’s NanoStat technology, which delivers medications through the skin or nasal passages.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
