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PROCESSA PHARMACEUTICALS ENTERS INTO A LICENSING AGREEMENT WITH YUHAN CORPORATION FOR THE DEVELOPMENT OF YH12852 IN FUNCTIONAL GASTROINTESTINAL DISORDERS
HANOVER, MD, Aug. 20, 2020 (GLOBE NEWSWIRE) -- Processa Pharmaceuticals, Inc. (OTCQB: PCSA) announced today that it has entered into a licensing agreement
About this update from Processa Pharmaceuticals, Inc.
[{"type":"text","content":"HANOVER, MD, Aug. 20, 2020 (GLOBE NEWSWIRE) -- Processa Pharmaceuticals, Inc. (OTCQB: PCSA) announced today that it has entered into a licensing agreement with Yuhan Corporation, a South Korean based company, to license in YH12852. YH12852 is a small molecule drug in development for the treatment of functional gastrointestinal (GI) disorders (FGID).\n Under the terms of the agreement, Processa will acquire the rights to a portfolio of patents with an exclusive license to develop, manufacture and commercialize YH12852 globally, excluding South Korea, where Yuhan will retain such rights. In exchange, Yuhan shall receive $2 million of Processa common stock in a non-refundable, non-creditable upfront payment. Yuhan is eligible to receive success-based development, regulatory and commercial milestone payments totaling a maximum of $408.5 million as well as royalties on net sales. YH12852 is a novel, potent and highly selective 5-hydroxytryptamine 4 (5-HT4) receptor agonist. Other 5-HT receptor agonists with less 5-HT4 selectivity have been shown to successfully treat GI mobility disorders such as chronic constipation, constipation-predominant irritable bowel syndrome, functional dyspepsia and gastroparesis. The less selective 5-HT4 agonists, such as cisapride, have been either removed from the market or not approved because of the cardiovascular side effects associated with the drugs binding to other receptors, especially 5-HT receptors other than 5-HT4. Yuhan had previously conducted extensive toxicological studies and Phase 1 studies for YH12852 which demonstrated that the product is safe for use and can be moved quickly into Phase 2 studies. Processa intends to meet with the FDA in early 2021 to further define the clinical development program. In 2021, Processa expects to initiate a Phase 2 trial in a functional GI motility-related disorder that needs better therapeutic options, such as postoperative ileus and opioid-induced constipation. “Sometimes it takes new strategies to find a way to maximize the value of new medicine. We are very pleased by this partnership with Processa who has the core expertise needed for the development of YH12852, and we look forward to working together to make this work,” said Jung Hee Lee, Chief Executive Officer of Yuhan Corporation. “The agreement with Yuhan is further evidence of Processa’s commit...