China-based Livzon Pharmaceutical Group Inc., (HKG: 1513, SHE: 000513) has announced a significant licensing agreement with fellow Chinese firm LanssonPharm. The agreement grants Livzon exclusive rights to Lansson’s phosphodiesterase 4 (PDE4) inhibitor, LS21031, in Greater China, marking a strategic move to expand Livzon’s portfolio in the mental health space.
Terms of the Licensing Agreement
Under the terms of the deal, Livzon will acquire all rights to LS21031 in the region. The company will pay an initial sum of RMB 15 million (USD 2 million) upfront and is committed to making additional payments. These include up to RMB 70 million (USD 9.7 million) in development milestone payments, up to RMB 80 million (USD 11 million) in sales milestones, and royalties on future sales. The royalty rate is set at a minimum of 4% of annual net sales, with a provision to reduce this rate to 1% should a third-party competitor launch a similar product in Greater China.
LS21031: A Promising Antidepressant with Cognitive Benefits
LS21031 received approval to be studied for depression in China in March 2023. The drug has shown promising results in terms of rapid onset of antidepressant effects and good safety profiles. Moreover, LS21031 has demonstrated potential to improve cognitive impairment, a significant advantage over existing treatments in the market.
Future Outlook
The acquisition of LS21031 underscores Livzon Pharmaceutical’s commitment to addressing unmet needs in the treatment of depression and cognitive disorders. With the potential for rapid symptom relief and cognitive improvement, LS21031 is poised to become a key player in Livzon’s pipeline and could significantly impact the mental health treatment landscape in Greater China.-Fineline Info & Tech
