Dong-A ST said Thursday that it has signed a license agreement with NeuroBo Pharmaceuticals for its DA-9801, a diabetic neuropathy treatment.

Under the agreement, Dong-A ST will receive $2 million and a 5 percent stake in NeuroBo, with milestones of up to $178 million, followed by commercialization royalties. NeuroBo will be responsible for the global clinical development, licensing and sales of DA-9801.

DA-9801 is a treatment for diabetic neuropathy. In 2011, the drug received support from the Ministry of Health and Welfare's healthcare research and development project. During that time, the drug also obtained funds from the Ministry of Trade, Industry and Energy’s bio-medical device original fusion technology development business.

Currently, the drug is awaiting phase 3 clinical trials in the U.S. after completing phase 2 clinical trials.

“Dr. Roy Freeman, the founder of Newrobo, has made remarkable achievements in the field of neuropathic drugs and is the ideal person to open a new paradigm in the field of natural products,” said Kang Soo-hyun, vice president of Dong-A ST. “The company expects that the successful development of Newrobo will accelerate the advancement of Dong-A ST’s natural products into the global market.”

NeuroBo Pharmaceuticals founded JK BioPharma Solutions, a company specializing in the development of biopharmaceuticals, and Roy Freeman, a Harvard Medical School neurologist, focuses on the development of natural medicine based on neuroscience.

Copyright © KBR Unauthorized reproduction, redistribution prohibited