Out-licencing deals are common in the larger healthcare sector. Earlier in the week, we saw BioLineRx Ltd. (BLRX) out-licencing its skin lesion treatment candidate, BL-5010, in Europe, Australia and additional countries to a Belgium based over-the-counter (OTC) healthcare company, Omega Pharma.
The companies inked the out-licensing agreement, as per which Omega Pharma is responsible for all development activities that are required to attain regulatory approval in the given territories for at least two OTC indications. Moreover, Omega Pharma will be in charge of the sponsoring, manufacturing and commercializing the drug in the regions.
Meanwhile, BioLineRx will retain the rights to the candidate in the U.S. and the rest of the world. BL-5010 with its first OTC indication is expected to hit the market in 2016.
Although the specific financial terms of the deal have been kept under wraps, BioLineRx expects to receive an undisclosed amount for each unit of BL-5010 following its approval along with certain commercial milestone payments. Also, BioLineRx will gain full access to data obtained during the development plan and may use the same to develop and/or license the candidate in other territories where it retains the rights.
This is not the first deal inked by BioLineRx this month. Earlier in the month, the company entered into a multi-year strategic collaboration agreement with Novartis (NVS) for the development and commercialization of Israeli-sourced candidates. BioLineRx and Novartis plan to jointly develop a number of pre-clinical and early stage programs.
BioLineRx does not have any secured source of income at present.
BioLineRx currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the healthcare space are Amgen Inc. (AMGN) and The Medicines Company (MDCO). Both stocks sport a Zacks Rank #1 (Strong Buy).
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