Suda signs deal with $936bn pharma company to sell its insomnia spray
Health & Biotech
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Suda Pharmaceuticals will sell its insomnia spray in Singapore, Malaysia and the Philippines next year after striking up a deal with a subsidiary of $936 billion pharma company Mitsubishi Tanabe.
Suda (ASX:SUD) makes ZolpiMist, an oral spray treatment for insomnia. ZolpiMist is a formulation of zolpidem tartrate, which was one of the drugs that Tiger Woods had in his system when he was arrested for falling asleep at the wheel last year. It also makes a Viagra spray.
It told investors this morning that it had signed a 12-month deal with Mitsubishi Tanabe Singapore, a subsidiary of giant pharma company Mitsubishi Tanabe, for the licence and supply of ZolpiMist in Singapore, Malaysia and the Philippines, with options to extend it to Thailand, Indonesia, Vietnam, Laos, Myanmar, Cambodia and Brunei.
Suda gets an upfront fee of $US100,000, plus up to $US880,000 if it meets certain criteria such as sales targets.
ZolpiMist will be registered with the Therapeutic Goods Administration in the process.
Stephen Carter, Suda chairman, said the companies would work together to ensure the drug’s success across the region.
“We have been in discussion with Mitsubishi Tanabe for several months and are very excited with the prospect of this partnership which will expand ZolpiMist coverage across Asia,” he said.
“By completing another agreement with a major pharmaceutical company, reinforces the work and developments of the company. We continue to focus on out-licensing our ZolpiMist product and are progressing further negotiations in a number of countries.”
The news did not move the needle in early Wednesday trade, with Suda shares flat at half a cent.
Its shares spiked 80 per cent in November when it struck a deal to develop a migraine drug in the United States.
Earlier this month, Suda joined forces with Zelda Therapeutics (ASX:ZLD) to develop an “oral spray of pharmaceutical-grade cannabinoid derivatives”.