News
TheraQuest Receives $3 Million in Equity Investment and Licensing Fees from Wonpung
TheraQuest Biosciences, Inc., a development stage pain management company today announced that it has completed a $3 million licensing and equity investment transaction with Wonpung Mulsan Co., LTD.
Najib Babul, PharmD, President and Chief Executive Officer of TheraQuest stated, "We are pleased to have completed this licensing and equity transaction with Wonpung. The funds from this transaction will be used to progress the development and testing of TQ-1015, our proprietary abuse deterrent, sustained release strong opioid and TQ-1011, our proprietary injectable formulation of ketoprofen."
Doosik Yi, MBA, President of Wonpung noted, "We have decided to in-license a portfolio of pain products and take an equity stake in TheraQuest for several reasons. First, TheraQuest has an attractive and diversified portfolio of proprietary pain products for the treatment of pain, which is an area of high unmet need. Second, its management team has considerable expertise in the development of therapies for pain management. Finally, TheraQuest's 505[b][2] business model significantly reduces the clinical and regulatory risk of drug development."
Transaction Highlights
- Wonpung has invested $1.5 million for an approximately 10% equity stake in TheraQuest and has an option to invest a further $1.5 million in 2008 under the same terms.
- Wonpung has made an upfront $1.5 million payment and agreed to unspecified royalties for the licensing rights in Asia for two products TheraQuest is currently developing. It has also acquired the right of first refusal for Asian licensing for an additional five products TheraQuest may develop in the future, on terms to be negotiated at a later date.
- Wonpung will be responsible for any required localization studies and all regulatory filings in Asian countries where it desires to commercialize the licensed products.