TFF Pharmaceuticals Inc (NASDAQ:TFFP) inked a licensing accord with Union Therapeutics for its TFFT (Thin Film Freezing Technology) for niclosamide. As per the terms of the global licensing pact, Union Therapeutics received a right for the outright purchase of the license for TFFT from TFF.
TFF will receive up to $210 million
Union Therapeutics will use TFFT for niclosamide that comprises inhalation and oral versions to cure coronavirus and other therapies derived from niclosamide. The company will pay up to $210 million towards milestone payments related to sales to TFF if it exercises its option. TFF is also eligible to receive royalties on the sale of the products.
Jointly works to get government grants
Under the terms of the agreement, both Union Therapeutics and TFF will work to secure grants and contracts from the government. They aim to receive grants from the government for the development of treatments based on niclosamide for coronavirus.
Repurposes niclosamide to treat SARS-CoV
The US FDA approved niclosamide, an oral anthelminthic drug, in 1982 for human use. It is also included in the essential medicines list of WHO. TFF used this drug to cure several million. It is recently repurposed to cure several viral infections that include SARS-CoV (severe acute respiratory syndrome coronavirus), Zika Virus, and MERS-CoV (Middle East respiratory syndrome coronavirus).
According to clinical trials, niclosamide has the potential to treat SARS-CoV-2. Low oral bioavailability and low absorption rate of niclosamide pose a challenge to develop it as an anti-viral therapy.
Second clinical study of Tacrolimus Inhalation Powder
CEO of TFF, Glen Mattes, said the company completed the Phase 1 dosing of Voriconazole Inhalation Powder to treat IPA (Invasive Pulmonary Aspergillosis). The company also commenced Phase 1 dosing in healthy subjects in the second clinical study of Tacrolimus Inhalation Powder to treat lung transplant rejection in patients.
Raises $25.913 million
TFF raised $25.193 million on August 13, 2020, through a private placement of its shares with quality healthcare investors. The company appointed Jefferies LLC as a placement agent for this transaction.
TFF will use the net proceeds to expedite the internal portfolio development besides Tacrolimus and Voriconazole inhalation powders.
TFF posted a net loss of $7.61 million in H1 2020. Its R&D expenses increased to $4.8 million in H1 2020.