Gilead licenses Hanmi’s encequidar for global virology in $34.5 mil deal

Gilead Sciences signed an exclusive worldwide license and supply deal for Korean pharma Hanmi Pharmaceutical’s encequidar for virology uses. The agreement totals up to $34.5 million, including $2.5 million upfront and up to $32 million in development, regulatory and sales milestones, plus tiered royalties on future net sales.

The three-party pact with Hong Kong's Health Hope Pharma (HHP) gives Gilead control of global development, manufacturing and commercialization once country approvals are in place. 

Hanmi and HHP will supply API and finished product and transfer technical know-how. Hanmi said in a Monday release that it revised its collaboration with HHP, which holds encequidar rights outside Korea, to enable the grant of Gilead’s worldwide virology license. The term runs until Gilead’s royalty obligations end; the royalty term wasn’t disclosed.

Encequidar is part of Hanmi’s Orascovery platform, which aims to convert injectables into oral formulations by enhancing intestinal absorption. The compound acts as a P-glycoprotein inhibitor to improve uptake of co-administered drugs.

“We are very pleased to announce this technology-export agreement together with Gilead and Hanmi Pharmaceutical,” said Dennis Lam, founder of HHP. “This contract showcases encequidar as a first-in-class P-gp inhibitor that demonstrates the potential to convert injectables to oral formulations across multiple areas.” 

Hanmi first out-licensed an oral chemotherapy using encequidar, Oraxol, to Athenex in 2011. After Athenex’s bankruptcy, related rights moved to HHP, which began Oraxol clinical trials in the United States, Hong Kong and New Zealand in June and plans additional development in other regions.