Pulmatrix Inc (NASDAQ:PULM) Will Receive An Upfront Payment Of $7.2 Million From Johnson & Johnson (NYSE:JNJ)’s Lung Cancer Initiative For Licensing Kinase Inhibitor

Johnson & Johnson (NYSE:JNJ)’s Lung Cancer Initiative has signed a licensing and development accord to access narrow-spectrum Kinase inhibitors of Pulmatrix Inc (NASDAQ:PULM). As per the terms of the deal, Lung Cancer Initiative will initially pay an upfront amount of $7.2 million to Pulmatrix. The company will pay an additional amount of $2 million on completing the RV1162/PUR1800’s phase 1b study in stable COPD patients.

Pulmatrix to receive an additional $91 million

Lung Cancer Initiative will pay an additional sum of $91 million to Pulmatrix towards the commercial and development milestones and royalty payments if the former decides to exercise the option on RV1162/PUR1800 and Kinase inhibitors.

The agreement allows Lung Cancer Initiative to access the narrow spectrum Kinase inhibitors of Pulmatrix for lung cancer interception development. CEO of Pulmatrix, Ted Raad, said iSPERSE Platform of the company could improve the efficacy and safety profile of the innovative drug candidates. The company has applied iSPERSE technology on the lead in-licensed inhibitor – RV1162/PUR1800. It helped to improve the profile of the products from the original formulation.

Expects to add iSPERSE enabled 505(b)(2) assets

Pulmatrix expects clinical data from these inhibitors in 2020 in a disease area to address unmet medical needs. As it achieves progress in this program, the company looks to collaborate with Lung Cancer Initiative. Pulmatrix will add wholly owned, and proprietary iSPERSE enabled 505(b)(2) assets to its product portfolio. It also expects data from the phase 2 Pulmazole program in 2020.

Pulmatrix strengthens the board

Pulmatrix has strengthened the board by appointing Rick Batycky, Ph. D. Red Raad commenting on his recruitment said Rick would contribute his expertise in drug development to the company. He brings a wide range of experience in respiratory therapeutics that includes iSPERSE dry powder inhalation technology. The company expects to gain significantly from his guidance as it advances its iSPERSE platform.

The recent stints of Rick include Chief Scientific Officer at Civitas Therapeutics, which is taken over by Acorda. He has significant expertise in developing inhaled drugs. In his stint at Acorda, Rick developed innovative dry powder inhalation therapy to cure motor issues in patients who have Parkinson’s disease.

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