Business model and goals
Through licensing deals with strategic partners in the form of major pharmaceutical companies, DexTech seeks partners who assume financial and operational responsibility for the continued clinical development. The licenses generate, according to the usual payment model, a one-time payment and then compensation in case of achieved development goals, so-called milestone compensation and future royalties on sales. Such partners have financial resources, experience in major clinical studies and established contacts with registration authorities. These partners will also be responsible in the future for the manufacture, marketing and sale of the registered medicines that may result from the development work. The value of a licensing deal after a Phase IIb study where the results show treatment effect affecting patient survival is considered significant.
The time for signing cooperation agreements with pharmaceutical companies is a business decision that is determined by costs, risk, skills needs and the value that another step in-house would add. Such cooperation agreements ensure that projects are brought to the knowledge and resources of large pharmaceutical companies at an early stage and DexTech avoids tying excessive resources in a single project. It is in the Company’s own interest to work without sacrificing safety to minimize the time until the launch of medicines.
- To ensure OsteoDex’s continued clinical development through partnerships during the financial year 2021/2022
- To conduct a clinical “proof of concept” multiple myeloma study during the financial year 2021/2022 (short study showing the relevance of the preparation with a limited number of patients)
- Continuing preclinical development of PSMA-Dex
- Developing CatDex/GuaDex for new indications
- Verifying/developing broadened indication for OsteDex for breast and lung cancer
The company’s primary goal is now to enter into an agreement with a licensee regarding OsteoDex. The stakeholders for OsteoDex are large organizations, which means a sluggishness regarding the timing of the negotiation process. This inertia, together with the great values to be negotiated and legally regulated by both parties, means that it is time-consuming work that must be done before a licensing agreement is in place.