French company MedinCell (Paris:MEDCL) and the Bill & Melinda Gates Foundation have signed an agreement for up to an additional $19 million to be granted over four years.
It aims to fund preclinical activities and a phase 1 clinical trial for the injectable six-month bioresorbable contraceptive (mdc-WWM). The grant is structured in advanced installments to cover the costs that will be incurred by the project. Depending on the options chosen and on the advancement of the program, up to $11.75 million could be raised over the next 12 months including a first tranche of $4.75 million to be paid immediately. The additional $7.25 million may be collected later.
As a reminder, a previous grant of $3.5 million was awarded in November 2017 by the Gates Foundation to fund the formulation research phase. Full results should make it possible to select the candidate formulation.
MedinCell owns all marketing rights of the product worldwide, including the United States where the contraceptive market totaled more than $5 billion in 2018. Long-acting reversible contraceptives (LARC) alone (primarily solid implants and intrauterine devices) represented 28% of this market – more than $1.4 billion – with a 5-year CAGR at 7.8%. The mdc-WWM product could capture a significant share of this LARC market and even expand it easing the adoption of this type of contraception1.
In accordance with the Global Access strategy of both partners and to ensure a significant impact on women’s lives, the objective is to make the product widely available. Affordable pricing in emerging economies will help eliminate cost as a barrier to increased availability and voluntary access to the product. High demand among women and girls for long-acting contraceptive options illustrate the potential for market growth and measurably improving maternal, newborn and child health. The Gates Foundation also has a non-exclusive license for non-commercial market in low- and middle-income countries.
Source: Company Press Release