Crescita Announces Licensing Agreement for Pliaglis; in China
LAVAL, QC, Nov. 5, 2020 /PRNewswire/ - Crescita Therapeutics Inc. (TSX: CTX) (OTC US: CRRTF) ("Crescita" or the "Company"), a growth-oriented, innovation-driven Canadian commercial dermatology company with in-house research & development ("R&D") and manufacturing capabilities, today announced that it has entered into an exclusive agreement with Juyou-Biotechnology Co. Ltd ("Juyou"), a biotechnology company that develops and sells medical and cosmetic skincare products, for the commercialization and development of Pliaglis® in mainland China (the "License Agreement").
Juyou will be responsible for the overall clinical development and regulatory filings for Pliaglis with the National Medical Products Administration (the "NMPA", formerly the China State Food and Drug Administration). As part of the License Agreement, Crescita will receive an upfront payment in cash of US$125,000 and will be eligible for regulatory and sales milestones of up to US$1.0 million and US$1.8 million. Crescita will supply Pliaglis at a pre-determined price per unit including a profit margin and will also be eligible for double-digit royalties once the product is available for commercial sale.
"We are excited about this new license agreement for Pliaglis in China, the third partnering agreement secured over the last three months, in addition to Austria and Mexico. We see this both as an opportunity to strengthen our geographic presence but to also add a healthy recurring revenue stream in the long-term," said Serge Verreault, President and CEO of Crescita. "While the clinical requirements still need to be validated with NMPA, we estimate that the product could be launched as early as 2023 if no additional studies are required," emphasized Mr. Verreault.
About Juyou Bio-Technology Co. Ltd.
Relying on independent research and development, the Company has formed gene recombination and fermentation engineering technology, and developed a number of core technologies, such as recombinant collagen, enzymatic and genetic engineering synthesis of bioactive peptides. At present, Juyou has 26 patents, and has established the Juyou research and development center for skin barrier repair with local dermatologists and professional institutions. It is the first such project in China to develop recombinant mussel adhesive protein by gene recombination, fermentation engineering technology and specific enzyme catalytic fusion technology, and is expected to become a leader in this field. For additional information, please visit http://zhanyan.com.cn/en.html.
About Crescita Therapeutics Inc.
Supported by a sales force covering Canada and executing a business to business to consumer marketing approach, Crescita sells its non-prescription skincare products domestically through spas, medispas, and medical clinics, as well as internationally, through distributors.
Crescita's portfolio also includes a prescription product called Pliaglis®, that utilizes the Company's proprietary phase-changing topical cream Peel technology, a part of the DuraPeel™ family, which are self-occluding, film-forming cream/gel formulations that provide extended release delivery of the active ingredients to the site of application.
Crescita's expertise in product formulation and development can be leveraged in combination with its patented transdermal delivery technologies to develop and manufacture creams, liquids, gels, ointments and serums under its contract development and manufacturing organization ("CDMO") infrastructure. The Company operates out of a 50,000 square-foot facility located in Laval, Québec, which produces the majority of its non-prescription skincare products, such as Laboratoire Dr Renaud, Pro-Derm, Dermazulene and Alyria. Formulations manufactured by or for Crescita include cosmetics, natural health products ("NHP") and products with Drug Identification Numbers ("DIN"). For additional information, please visit www.crescitatherapeutics.com.
Forward-looking statements are not historical facts but instead represent management's expectations, estimates, projections and assumptions regarding future events or circumstances. Such forward-looking statements are qualified in their entirety by the inherent risks, uncertainties and changes in circumstances surrounding future expectations which are difficult to predict and many of which are beyond the control of the Company. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management of the Company as of the date of this press release, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Material factors and assumptions used to develop the forward-looking statements, and material risk factors that could cause actual results to differ materially from the forward-looking statements, include but are not limited to the risks of, and future impacts related to, COVID-19, including the response of domestic and international governments to the virus; the impact of COVID-19 on the Company's operations, personnel, supply chain, product sales, royalties, customer demand and financial flexibility; changes in the business or affairs of Crescita; the ability of Crescita's licensees to successfully market its products; competitive factors in the industries in which Crescita operates; relationships with customers, suppliers and licensees; changes in legal and regulatory requirements; foreign exchange and interest rates; prevailing economic conditions; and other factors, many of which are beyond the control of Crescita.
Additional factors that could cause Crescita's actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the risk factors included in Crescita's most recent Annual Information Form under the heading "Risks Factors", and as described from time to time in the reports and disclosure documents filed by Crescita with Canadian securities regulatory authorities and commissions. These and other factors should be considered carefully, and readers should not place undue reliance on Crescita's forward-looking statements when making decisions, as forward-looking statements involve significant risks and uncertainties. Forward-looking statements should not be read as guarantees of future performance or results and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved.
All forward-looking statements are based only on information currently available to the Company and are made as of the date of this press release. Except as expressly required by applicable Canadian securities law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. All forward-looking statements in this press release are qualified by these cautionary statements.
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SOURCE Crescita Therapeutics Inc.
Company Codes: Toronto:CTX, OTC-PINK:CRRTF