Full Press Release Details
Edesa Biotech and Light Chain Bioscience Sign License Agreement to
Develop Treatments for COVID-19 Pneumonia and Other
TORONTO, ON / ACCESSWIRE / April 20, 2020 / Edesa Biotech,
Inc. (NASDAQ:EDSA), a clinical-stage biopharmaceutical company,
today announced a strategic agreement with Light Chain Bioscience
(a brand of NovImmune SA), a leading Swiss pharmaceutical
development company, for an exclusive worldwide license to develop
and commercialize two Phase 2-ready biologic drug candidates for
all therapeutic, prophylactic and diagnostic
monoclonal antibodies licensed from Light Chain Bioscience block
certain signaling proteins, known as TLR4 and CXCL10. These
molecules are associated with a broad range of diseases, including
infectious diseases. Edesa plans to pursue the development of these
signaling molecules as potential treatments for acute respiratory
distress syndrome and lung injury resulting from viral respiratory
infections, such as the coronavirus that causes COVID-19, and other
Nijhawan, MD, Chief Executive Officer of Edesa, said that the
company's work has been made more urgent by the COVID-19 crisis.
"While we originally sought these assets primarily for use in
indications in line with our strategic focus areas, there is
compelling data that these drug candidates could help regulate the
exaggerated immune response that causes acute injury to the
respiratory tract in patients with coronavirus pneumonia and other
respiratory infections."
Nijhawan noted that the administration of TLR4 and CXCL10
antagonists have been demonstrated to rescue mice from lethal
influenza infection and ameliorate virus-induced acute lung injury.
"With human safety data available and the lead drug already
manufactured, we are preparing regulatory applications for clinical
studies and plan to seek expedited government approval and support,
including potential non-dilutive funding," he said.
consideration for the late-stage clinical assets, Edesa will issue
to Light Chain Bioscience Series A-1 Convertible Preferred Shares
at an agreed value of $2.5 million with a fixed conversion price
and, subject to meeting certain business and clinical milestones,
provide near-term consideration of up to $6.0 million for drug
product inventory and other milestone fees. Edesa will be
responsible for development, product registration and
commercialization. Light Chain Bioscience will be eligible to
receive up to $363.5 million in aggregate development, approval and
commercial sales milestone payments and other consideration. Light
Chain Bioscience is also eligible to receive royalties based on
sales. During the term of the agreement, Edesa has the option to
purchase the assets.
Chain Bioscience has been at the forefront of antibody development
technology for the last two decades and is a world leader in
antibody engineering, and we are pleased to have been able to
identify and in-license two potential best-in-class biologics for
use in a broad range of therapeutic areas. As we learned more about
these assets we were excited to recognize their potential
application for acute respiratory distress syndrome and lung
injury," said Dr. Nijhawan. "Our strategic agreement with Light
Chain Bioscience is structured to allow us to rapidly advance these
experimental therapies into the clinic while minimizing immediate
Chain Bioscience's Chief Executive Officer Nicolas Fischer
commented, "This global agreement with Edesa provides further
validation of our unique expertise in the discovery and development
of antibody-based therapeutics. We believe that the scientific
rationale behind Edesa's therapeutic targets are sound and the
company is well positioned to advance these assets and unlock their
therapeutic potential."
About COVID-19 Acute Respiratory Distress Syndrome
all serious cases of COVID-19 feature rapidly progressive
pneumonia, diffuse alveolar damage, severe acute respiratory
distress syndrome, respiratory failure and fibrosis. As in other
viral pneumonia, the infection causes inflammation and injury to
the respiratory tract as a result of direct viral injury and, often
to a greater extent, from an exaggerated innate immune response.
According to evolving data the current global pandemic, the most
common cause of death in COVID-19 patients is ARDS.
About Edesa Biotech, Inc.
Edesa Biotech, Inc. (Nasdaq: EDSA) is a clinical-stage
biopharmaceutical company focused on efficiently developing
innovative treatments that address significant unmet medical needs.
Edesa's lead product candidate, EB01, is a novel non-steroidal
anti-inflammatory molecule (sPLA2 inhibitor) for the treatment of
chronic allergic contact dermatitis which has demonstrated
statistically significant improvements in multiple clinical
studies. A Phase 2b clinical study of EB01 was initiated in October
2019. Edesa also intends to expand the utility of its sPLA2
inhibitor technology, which forms the basis for EB01, across
multiple indications and expand its portfolio with assets that can
drive long-term growth opportunities. The company is based in
Markham, Ontario, Canada, with U.S. offices in Southern
About Light Chain Bioscience
Chain Bioscience is a brand of NovImmune SA, a privately held Swiss
pharmaceutical development company focused on the discovery and
development of therapies based on bispecific and multi-specific
antibody formats. Since 1998 the company has brought seven
monoclonal antibodies to clinical development stage, one of which,
Emapalumab, a monoclonal antibody that binds and neutralizes
interferon gamma, was approved by the FDA in 2018. In 2019, Swedish
Orphan Biovitrum AB, acquired NovImmune's Emapalumab business for
US$519 million. Since the successful divestment of Emapalumab, the
company has focused on its bispecific technology to build a
pipeline of multispecific antibodies under its Light Chain
Bioscience business. For more information, visit www.lightchainbio.com
Edesa Forward-Looking Statements
This press release may contain forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as