Synergy Pharmaceuticals announces license agreement with Luoxin Pharmaceutical
Synergy Pharmaceuticals announced that the company has entered into a license agreement with Luoxin Pharmaceutical Group Co., Ltd., Shandong providing Luoxin exclusive rights to develop and commercialize Synergy's lead product TRULANCE for the treatment of adults with chronic idiopathic constipation and irritable bowel syndrome with constipation in mainland China, Hong Kong and Macau. Under the terms of the agreement, Synergy will receive an upfront payment of $12M. Synergy is also eligible, in the event that certain regulatory and commercial milestones are met, to receive additional payments of up to $56M in aggregate. In addition, Synergy is eligible to receive tiered royalty payments on aggregate net sales. Luoxin will lead clinical development in China and be responsible for all activities and expenses relating to clinical development, regulatory approval, and commercialization in China. Yafo Capital acted as a financial advisor on this transaction.