Full Press Release Details
Journey Medical Corporation Enters into an Exclusive
License Agreement with Maruho Co., Ltd. for Qbrexza in South Korea and Other Asian Nations
Journey to receive an upfront payment of $19
Scottsdale, AZ - September 6, 2023
- Journey Medical Corporation (Nasdaq: DERM) ("Journey Medical" or "the Company"), a commercial-stage pharmaceutical
company that primarily focuses on the selling and marketing of U.S. Food and Drug Administration ("FDA") approved prescription
pharmaceutical products for the treatment of dermatological conditions, today announced it has entered into an exclusive license agreement
(the "Agreement") with Maruho Co., Ltd. ("Maruho"), a Japanese company specializing in dermatology and also Journey's
exclusive licensing partner that developed and is commercializing Qbrexza (Rapifort ) in Japan. Pursuant to the
terms of the Agreement, Journey Medical granted Maruho an exclusive license to develop and commercialize Qbrexza (Rapifort
/ DRM04 / glycopyrronium tosylate hydrate) for the treatment of hyperhidrosis, in South Korea, Taiwan, Hong Kong, Macau, Thailand, Indonesia,
Malaysia, Philippines, Singapore, Vietnam, Brunei, Cambodia, Myanmar and Laos (the "Territory").
Under the terms of the Agreement, Journey Medical
will receive a $19 million nonrefundable upfront payment. Maruho is responsible for all development and commercialization costs for the
program throughout the Territory. Additionally, in conjunction with the new license grant, Journey Medical and Maruho have also entered
into an amendment of their existing license agreement that grants Maruho exclusive rights to Qbrexza (Rapifort) in Japan (the "Amendment").
The Amendment contains modifications that reduce certain royalty and milestone obligations payable to Journey, among other changes to
certain economic sharing obligations. Under the Amendment, Journey is still eligible to receive certain milestones payments, totaling
Claude Maraoui, Journey Medical's Co-Founder,
President and Chief Executive Officer, said, "As Journey Medical continues to expand its out-licensing
efforts globally, we are delighted to work with Maruho to further expand the reach of Qbrexza (Rapifort) to address the unmet need
of patients suffering from hyperhidrosis in the expanded territories. Maruho has successfully commercialized Qbrexza (Rapifort) in Japan,
bolstering our confidence in Maruho's ability to bring this novel product to the broader region. We look forward to making this
innovative, effective and well-tolerated product more accessible to patients who suffer from hyperhidrosis."
According to the International
Hyperhidrosis Society, nearly 5% of the world's population suffers from hyperhidrosis.
About Journey Medical Corporation
Journey Medical Corporation (Nasdaq: DERM) ("Journey
Medical") is a commercial-stage pharmaceutical company that primarily focuses on the selling and marketing of U.S. Food and Drug
Administration-approved prescription pharmaceutical products for the treatment of dermatological conditions through its efficient sales
and marketing model. The company currently markets eight branded and three generic products that help treat and heal common skin conditions.
The Journey Medical team comprises industry experts with extensive experience in developing and commercializing some of dermatology's
most successful prescription brands. Journey Medical is located in Scottsdale, Arizona and was founded by Fortress Biotech, Inc. (Nasdaq:
FBIO). Journey Medical's common stock is registered under the Securities Exchange Act of 1934, as amended, and it files periodic
reports with the U.S. Securities and Exchange Commission ("SEC"). For additional information about Journey Medical, visit
Forward-Looking Statements
This press release may contain
"forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. As used below and throughout this press release, the words "the
Company", "we", "us" and "our" may refer to Journey Medical. Such statements include, but
are not limited to, any statements relating to our growth strategy and product development programs and any other statements that
are not historical facts. The words "anticipate," "believe," "estimate," "may,"
"expect," "will," "could," "project," "intend" and similar expressions
are generally intended to identify forward-looking statements. Forward-looking statements are based on management's current
expectations and are subject to risks and uncertainties that could negatively affect our business, operating results, financial
condition and stock price. Factors that could cause actual results to differ materially from those currently anticipated include:
the fact that our products and product candidates are subject to time and cost intensive regulation and clinical testing and as a
result, may never be successfully developed or commercialized; a substantial portion of our sales derive from products that may
become subject to third-party generic competition, the introduction of new competitor products, or an increase in market share of
existing competitor products, any of which could have a significant adverse impact on our operating income; we operate in a heavily
regulated industry, and we cannot predict the impact that any future legislation or administrative or executive action may have on
our operations; our revenue is dependent mainly upon sales of our dermatology products and any setback relating to the sale of such
products could impair our operating results; competition could limit our products' commercial opportunity and profitability,
including competition from manufacturers of generic versions of our products; the risk that our products do not achieve broad market
acceptance, including by government and third-party payors; our reliance third parties for several aspects of our operations; our
dependence on our ability to identify, develop, and acquire or in-license products and integrate them into our operations, at which
we may be unsuccessful; the success of any of our licensing arrangements including with our exclusive licensing partner and any
resulting revenue from such arrangements; the dependence of the success of our business, including our ability to finance our
company and generate additional revenue, on the successful development and regulatory approval of the DFD-29 product candidate and
any future product candidates that we may develop, in-license or acquire; clinical drug development is very expensive, time
consuming, and uncertain and our clinical trials may fail to adequately demonstrate the safety and efficacy of our current or any
future product candidates; our competitors could develop and commercialize products similar or identical to ours; risks related to
the protection of our intellectual property and our potential inability to maintain sufficient patent protection for our technology
and products; our business and operations would suffer in the event of computer system failures, cyber-attacks, or deficiencies in
our or our third parties' cybersecurity; the substantial doubt about our ability to continue as a going concern; the effects
of major public health issues, epidemics or pandemics on our product revenues and any future clinical trials; our potential need to
raise additional capital; Fortress controls a voting majority of our common stock, which could be detrimental to our other
shareholders; as well as other risks described in Part I, Item 1A, "Risk Factors," in our Annual Report on Form 10-K for
the year ended December 31, 2022, subsequent Reports on Form 10-Q, and our other filings we make with the SEC. We expressly disclaim
any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to
reflect any change in our expectations or any changes in events, conditions or circumstances on which any such statement is based,
except as may be required by law, and we claim the protection of the safe harbor for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995.
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