Shares in Tetratherix Ltd (ASX: TTX) have surged more than 25% in early trade after the company announced a deal which could earn it more than US$30 million over the next 10 years.
The drug development company said in a statement to the ASX that it had struck a deal with fellow Australian company Superpower around its "platform polymer".
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Strong revenue flow
Under the deal, Superpower will pay Tetratherix US$3 million per year for up to 10 years and will also purchase Tetratherix's platform polymer branded as STEPP for the nasal delivery of "longevity and metabolic compounds such as GLP-1, peptides and hormones in the US market''.
Tetratherix said STEPP had been in "stealth development" for more than five years and is able to be used for the delivery of a range of compounds.
Tetratherix Chief Technology Officer Ali Fathi said:
Our precision medicine franchise is the culmination of more than 5 years of relentless, focused R&D in drug delivery – a journey driven by the conviction that science is only as powerful as its accessibility. I want to thank our research partners who have been instrumental in the development of this once in a generation, enabling technology which will lead to impact beyond our comprehension of what is possible in the way healthcare is delivered. We are now poised to transform the lives of millions across the globe, initially within the high impact landscapes of GLP-1s and peptide therapies with Superpower. Beyond the molecules themselves, this alliance will grant us early, scaled access to real world evidence allowing us to bridge the gap between clinical potential and actual patient outcomes in record time.
Tetratherix said STEPP was a nasal delivery compound that forms a "sticky cushion" once inhaled into the nose, and ensures that the drug being delivered remains in place and is not washed away.
The company added:
Beyond just staying put on the nasal lining, STEPP acts as a protective bubble wrap for the compounds themselves. Delicate compounds like GLP-1s and peptides are easily broken down by the body's natural enzymes before they can even start working. STEPP wraps these fragile molecules in a defensive layer, shielding them from being destroyed.
Tetratherix Chief Executive Will Knox said the deal was a "masterstroke in speed and strategic alignment and we couldn't be more excited about working with Superpower''.
Shares in the ASX biotech were 27.6% higher at midday at $5.31.
The company was valued at $113 million at the close of trade on Friday.
