Australian life-science company Invion (ASX:IVX) has entered into a conditional agreement with RMW Cho Group to expand its existing co-development agreement for RMW’s Photosoft technology.
Under the proposed transaction, Invion and RMW will expand the territory for co-development, and distribution rights of the Photosoft technology in relation to atherosclerosis and infectious diseases (AID) to include the US, Canada, and Hong Kong in relation to the ID Indications.
Also outlined in the agreement, Invion will pay RMW $2.5 million as a contribution to prior development costs invested by RMW in the Photosoft technology in relation to the ID Identifications for the territories of the US, Canada, and Honk Kong.
Any further non-clinical work will be funded by Invion and RMW 25% to 75% respectively, and future clinical work will be 75% funded by Invion, and 25% by RMW.
The company reports RMW may elect to cancel the distribution rights granted to Invion over the territory of Hong Kong for the ID Indications subject to paying fair compensation to Invion.
The agreement also outlines that Invion may elect to make a further contribution of $1 million towards the development of Photosoft in relation to atherosclerosis for the US, Canada, and Hong Kong. In this case, the company notes its licence and distribution rights will also expand to include these territories.
The co-development agreement and exclusive licence and distribution agreement for AID may also be terminated for breach of any material term and the breach is not capable of remedy, or otherwise is not remedied within 30 business days after the receipt of notice from the other party, or otherwise may also be terminated if any insolvency event occurs in respect to the other party.
Invion reports the proposed transaction is conditional upon approval by its shareholders on or before 31 May 2023. The company intends to call an extraordinary general meeting as soon as reasonably practicable.
The company also notes a notice of meeting, including an independent expert’s report will be circulated to shareholders regarding the proposed resolution.
Invion is a life-science company that is leading the global research and development of Photosoft technology for the treatment of a range of cancers, atherosclerosis, and infectious diseases.
The company holds the exclusive Australia and New Zealand licence rights to Photosoft for all cancer indications, and Asia Pacific (excluding China) for atherosclerosis and infectious diseases.
Research and clinical cancer trials are funded by the technology licensor RMW Cho Group through a research and development agreement with the company.
Photosoft technology is a novel, ‘next-generation’ Photodynamic Therapy (PDT) which uses non-toxic photosensitisers and light to selectively kill cancer cells, and promote anti-cancer immune responses.
Invion says the technology is less invasive than surgery with minimal side effects, and offers an alternative treatment option aimed at achieving complete tumour regression, and long-lasting remission