TGR has raised $3 million to fund further clinical development of WGFE as a treatment for oral mucositis, a debilitating side effect of cancer treatments.
GroPep will receive royalties of more than 10% on TGR's commercialisation of the technology.
Biopharmaceutical company GroPep Limited (ASX: GRO) today announced that it has licensed certain Whey Growth Factor Extract (WGFE) technology rights to TGR BioSciences Pty Ltd (TGR). This arrangement will also allow TGR to raise additional funds to finance further development of the technology.
Under two separate agreements, venture capitalist Nanyang Innovation Fund managed by Nanyang Ventures (Nanyang) will invest up to $3 million, TGR will start a clinical trial of WGFE for oral mucositis and GroPep will license the WGFE technology to TGR.
GroPep will receive royalties of more than 10% from TGR on commercialisation of the technology and TGR has taken over responsibility for five patent families developed by GroPep and the related costs. GroPep's shareholding in TGR is reduced from 20% to 12%.
Among the rights licensed to TGR is GroPep's oral mucositis product technology. Oral mucositis is an extremely painful side effect afflicting chemotherapy patients. GroPep and collaborators have previously generated significant preclinical and clinical data, including a successful Phase 1b trial conducted at the Peter MacCallum Cancer Centre in Melbourne, indicating the safety and potential for WGFE to treat this condition. TGR has committed to initiate further clinical development in the oral mucositis setting within the next year.
Mr Gregory Moss-Smith, Vice President of Commercial Operations at GroPep, said "Licensing the technology to TGR, combined with the capital injection from Nanyang, is an effective means of advancing
Contact: Tony Mitchell