Dong-A ST (Vice Chairman Kang Soo-hyoung) announced on January 18 that it has concluded an agreement with NeuroBo Pharmaceuticals of the USA to license out the diabetic neuropathy treatment ‘DA-9801’, a proprietary natural drug product of the company.

According to the agreement, Dong-A ST will receive a $2 million deposit and a 5% share of NeuroBo (up to $178 million in accordance with phased milestones), and sales royalties after its commercialization. NeuroBo will be responsible for the global clinical development, licensing and sales of DA-9801.

NeuroBo Pharmaceuticals, located in Boston, USA, is a joint venture established by JK BioPharma Solutions, a company specializing in the development of biopharmaceuticals, and Dr. Roy Freeman, a neurologist at the Harvard Medical School, for the purpose of developing natural medicines based on neuroscience.

Dr. Freeman, a neurology director at the Beth Israel Deaconess Medical Center of Harvard Medical School, is a renowned medical professor in clinical studies of pain and neurological diseases. He has also played a key role in the clinical development of Lilica (Pfizer), a global blockbuster neuropathy drug, and in Phase II clinical trials for DA-9801 in the United States.

DA-9801, a treatment for diabetic neuropathy, is a natural drug product with analgesic and nerve regeneration effects. In 2011, the company was selected for a healthcare research and development project of the Ministry of Health and Welfare and a bio-medical device industry convergence source technology development project of the Ministry of Trade, Industry and Energy for the purpose of domestic and US development. The company has successfully completed the Phase II clinical trials in the USA and is currently conducting the Phase III clinical trials.

Vice Chairman Kang Soo-hyoung of Dong-A ST said, “Dr. Freeman, the founder of NeuroBo, has made remarkable achievements in the field of neuropathic medicine, and is the ideal person to open a new paradigm in the field of natural products. We hope that the successful development of NeuroBo will accelerate the entry of Dong-A ST’s natural products into the global market.”