Ocugen, Inc. announced the signing of a binding term sheet to negotiate and enter into a licensing agreement with a well-established pharmaceutical and healthcare leader in Korea. This agreement grants exclusive Korean rights to OCU400, Ocugen’s novel modifier gene therapy for retinitis pigmentosa (RP). This regional licensing agreement aligns with Ocugen's business development strategy to partner with companies in specific geographies.
Pursuant to the term sheet, Ocugen will receive upfront license fees and near-term development milestones totaling up to $11 million. Additionally, the company will be entitled to sales milestones of $1 million for every $15 million of net sales in Korea, along with a 25% royalty on net sales of OCU400 generated by its partner. Ocugen will also be responsible for manufacturing the commercial supply of OCU400 under a separate supply agreement.
There are an estimated 15,000 individuals in the Republic of Korea living with RP, representing a significant patient population. This partnership provides an opportunity for Ocugen's partner to become a leader in gene therapy in Korea, while preserving Ocugen’s rights to larger geographies. The deal is expected to maximize total patient reach and generate returns for shareholders, with a definitive agreement anticipated within the next 60 days.
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