Dimerix Ltd (ASX: DXB) shares are catching the eye of investors on Tuesday.
In morning trade, the ASX healthcare stock is up 31% to 46.5 cents.
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Why is this ASX healthcare stock rocketing?
Investors have been fighting to get hold of the clinical-stage biopharmaceutical company's shares after it released a very positive announcement.
According to the release, Dimerix has entered into an exclusive development and license agreement with FUSO Pharmaceutical Industries.
FUSO Pharmaceutical Industries is a Japan-based pharmaceutical company that is engaged in the development, manufacture, and sale of basic pharmaceutical products that are essential for medical treatment. This includes dialysis solutions for artificial kidneys, infusions and injections, and products related to infertility treatment.
The two parties have signed an agreement for the development and commercialisation of the ASX healthcare stock's phase 3 drug candidate DMX-200 for the treatment of focal segmental glomerulosclerosis (FSGS) kidney disease in Japan.
FUSO will be responsible for all development costs, submissions, and maintenance of the regulatory dossier with the Japanese Pharmaceutical and Medical Device Agency (PMDA), as well as all sales and marketing activities in Japan.
This is the third license deal executed for DMX-200 following deals with Advanz Pharma and Taiba. Dimerix will retain all rights to commercialise DMX-200 in all territories other than those covered by these license agreements.
What is DMX-200?
DMX-200 is currently in global phase 3 clinical development for treatment of FSGS kidney disease, with a blinded interim analysis anticipated in August.
If successfully developed, it could be a very lucrative product for the ASX healthcare stock.
As part of the agreement with FUSO Pharmaceutical Industries, Dimerix will receive a payment of 300 million yen (~A$3.1 million) within 40 days of executing the agreement, 400 million yen (~A$4.1 million) on initiation of the first clinical trial site (anticipated in Q1 2025), plus potential development and commercialisation milestones of up to 9.8 billion yen (~A$100 million).
Commenting on the agreement, the ASX healthcare stock's CEO and managing director, Dr Nina Webster, said:
We are delighted to partner with FUSO for the commercialisation of DMX-200 in Japan. FUSO brings a wealth of experience in pharmaceutical development and sales and marketing across Japan, and with a proven record in sales and marketing products for patients with renal disease.
This partnership reflects a confidence not only in the significant potential for DMX-200 in FSGS patients but also in Dimerix' capabilities in the development of DMX-200. FUSO's expertise and resources will be invaluable in supporting Dimerix to advance our shared goal of developing and commercialising DMX-200 and bringing hope to those patients desperately in need of treatment options.
