Grifols and Aradigm have entered into an exclusive, worldwide licensing deal for formulations of inhaled ciprofloxacin (Pulmaquin and Lipoquin) to treat severe respiratory diseases such as non-cystic fibrosis bronchiectasis (BE).
Aradigm finished Phase 2b trials in BE patients with Pulmaquin and Lipoquin while the agreement will focus on advancing the candidate into Phase III trials in BE.
Grifols will spend a maximum of $65m as development and clinical expenses for the BE indication.
Aradigm is eligible for cash payments of up to $25m as development milestones besides sales-based royalties related to products leveraging its inhaled ciprofloxacin formulations.
Grifols, responsible for all commercialization activities, will have an option to license Aradigm’s AERx pulmonary drug delivery platform for use with another molecule.
The transaction, which is expected to close in the second half of 2013, is subject to certain closing conditions.
Aradigm president and CEO Igor Gonda said, "Grifols is a great fit for us with their global reach of respiratory physicians treating a number of conditions that could benefit from Pulmaquin."