VectivBio Holding AG (NASDAQ: VECT) has made two deals that would benefit its operations, balance sheets, and expand the commercialization of apraglutide away from the company’s E.U and U.S markets. Its cash equivalents, cash, and two deals give it an operating capital of $220 million.
The company’s deal with Asahi Kasei Pharma Corporation
One of the company’s agreements is with Asahi Kasei. This deal includes a licensing agreement that allows the company to commercialize and develop appraglutide for short bowel syndrome and other diseases in Japan.
Asahi Kasei will give VectivBio $30 million. About $5 million from this amount will be Asahi Kasei’s first installment for cost-sharing in the development. VectivBio will also expect a payment of $170 million from Asahi Kasei should it reach certain milestones and satisfies regulatory requirements. Asahi Kasei, on the other hand, will have the authority to lead, fund, commercialize, register, and participate in developing new indications in Japan.
According to the CEO and Founder of VectivBio, Luca Santarelli, the company is happy to collaborate with Asahi. The latter is a prominent competitor in Japan’s pharmaceutical industry. It has successfully commercialized and developed different drugs. Moreover, it has taken part in many international collaborations.
Partnering with Asahi Kasei enables VectivBio to speed up the development and commercialization of Apraglutide. This move is crucial as Japan is one of the company’s key markets.
Asahi Kasei’s president, Yoshikazu Aoki, stated that the company is happy to work with VectivBio. VectivBio is known for developing groundbreaking theories that treat rare diseases. For this reason, it is an ideal partner for the company.
The company’s partnerships will enable it to work at optimal efficiency
The other deal that VectivBio has entered is with Kreos Capital, a company that lends to healthcare and life sciences businesses. Santarelli states that these partnerships allow the company to operate optimally as it develops its latest therapy.
The company believes that its decision will be instrumental in its goal to develop theories for rare diseases. Furthermore, it hopes that it can use appraglutide to treat SBS-IF patients. The company will support its team as it tries to achieve its goals.
Apraglutide is the company’s lead candidate. VectivBio created it to treat several rare diseases of the gastrointestinal tract.
