Aurealis Therapeutics, a synthetic biology company developing groundbreaking four-in-one cell and gene therapies and Xbiome, an AI-based microbiome drug development company, announced that the two companies have entered into an exclusive license and collaboration agreement for the clinical development and commercialization of Aurealis investigational Diabetic Foot Ulcer (DFU), other chronic wounds, and inflammatory disease therapy AUP-16 in Greater China. Shanghai-based Lynx Financial served as Aurealis’ exclusive financial advisor in this transaction.
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Under the terms of the license and collaboration agreement, Xbiome acquires exclusive development and commercial rights for all human use to Aurealis clinical stage DFU drug candidate AUP-16 in Mainland China, Hong Kong, Macao, and Taiwan. Xbiome will be responsible for all clinical and other development, regulatory submissions, and commercialization of the licensed products in the licensed territory. Aurealis retains full rights to AUP-16 outside of the specified territory and will continue to lead the global development of the drug candidate. The companies will collaborate on the joint development for DFU and potentially on other selected indications. As a consideration for the agreement, Aurealis will receive an upfront payment, development milestone payments, and is eligible to receive commercial milestone payments and royalties on product sales, which all taken together could amount to a total consideration of $139 million plus single to double digit ascending royalties on product sales.
“We are extremely happy to partner with Xbiome. We are impressed of their expertise, agility in execution, and commitment to the treatment of diabetes-related diseases and introducing the world’s leading AI microbiome-based treatment methods and drugs into the China market and beyond, of which AUP-16 will be a great example. We believe that this partnership will accelerate the development of AUP-16 as a potential new therapy for DFU and other chronic wound patients.” said Juha Yrjänheikki, Aurealis CEO.
“At Aurealis we develop truly novel GMO cell and gene therapies to improve the lives of millions of patients worldwide. DFUs and other chronic wounds not only cause great pain, but also enormous costs to the society. We are very excited to collaborate with Xbiome and work together to develop a unique cure for these conditions with rapidly growing prevalence in China and around the world. We are honored to embark on this journey together with our colleagues at Xbiome.” continued Roger Meier, Aurealis Chairman of the Board.