Rexahn and a top 20 pharmaceutical company (the “Partner Co”) have signed an exclusive collaboration to develop RX-3117, an exciting new anti-cancer compound.

The deal includes an option for license agreement with the Partner Co and will develop RX-3117, a small molecule, new chemical entity (NCE), nucleoside compound that could contain an anti-metabolite mechanism of action and therapeutic potential in a broad range of cancers including colon, lung and pancreatic cancer.

The signing of the agreement by both parties precedes a definitive deal for the exclusive development and commercialisation of RX-3117.

The contract with the Partner Co is based on the company agreeing to proceed with the transaction depending on its satisfaction with its ongoing due diligence activities, and other customary conditions.

If the Partner Co proceeds, then under the terms of the agreement, Rexahn will receive upfront payments in the form of equity investment and will be eligible to receive development, regulatory and sales milestone payments.

Rexahn will then receive royalties on net sales worldwide.

Rexahn chairman and CEO Chang Ahn said that the commitment of a big pharmaceutical partner to collaborate with Rexahn is a major step forward in its strategy and validates the commercialisation value of the company’s pipeline.

“RX-3117 is a highly promising anticancer compound with potential for oral and IV formulation, and this new partnership serves to rapidly advance its development and helps us realise a potentially significant revenue stream,” Ahn said.