Edesa Biotech and Light Chain Bioscience sign license agreement to develop treatments for COVID-19 pneumonia and other disorders

On April 20, 2020, Edesa Biotech, Inc., a clinical-stage biopharmaceutical company based in Markham, Ontario, Canada, with U.S. offices in Southern California, announced a strategic agreement with Light Chain Bioscience (a brand of NovImmune SA), a privately held Swiss pharmaceutical development company focused on the discovery and development of therapies based on bispecific and multi-specific antibody formats, for an exclusive worldwide license to develop and commercialize two Phase 2-ready biologic drug candidates for all therapeutic, prophylactic and diagnostic applications. The monoclonal antibodies Light Chain Bioscience has licensed block certain signaling proteins, known as TLR4 and CXCL10. Edesa plans to pursue the development of these signaling molecules as potential treatments for acute respiratory distress syndrome and lung injury resulting from viral respiratory infections, such as the coronavirus that causes COVID-19, and other disorders as TLR4 and CXCL10 are associated with a broad range of diseases, including infectious diseases. Administration of TLR4 and CXCL10 antagonists have been demonstrated to rescue mice from lethal influenza infection and improve virus-induced acute lung injury. Human safety data is available and the lead drug has already been manufactured. Edesa is preparing regulatory applications for clinical studies and plans to seek expedited government approval and support, including potential non-dilutive funding. Edesa ISSUED to Light Chain Bioscience Series A-1 Convertible Preferred Shares at an agreed value of $2.5 million with a fixed conversion price and, subject to meeting certain business and clinical milestones, provide near-term consideration of up to $6.0 million for drug product inventory and other milestone fees. Edesa will be responsible for development, product registration and commercialization. Light Chain Bioscience will be eligible to receive up to $363.5 million in aggregate development, approval and commercial sales milestone payments and other consideration. Light Chain Bioscience is also eligible to receive royalties based on sales. During the term of the agreement, Edesa has the option to purchase the assets. Fasken acted as Canadian Counsel to Edesa Biotech with a team led by Wojtek Baraniak and including Myroslav Chwaluk, Armand Benitah, Sam Li, Jordana Keslassy, George Soules, and Tracy Lowe.