DOR BioPharma receives $1.5M for that privilege.
DOR BioPharma received $1.5 million from Sigma-Tau Pharmaceuticals under a letter of intent that grants Sigma-Tau an exclusive right to negotiate terms and conditions for a possible business transaction or strategic alliance regarding orBec® (oral beclomethasone dipropionate or oral BDP) and potentially other DOR pipeline compounds until March 1, 2009.
Under the terms of the agreement, Sigma-Tau has purchased $1.5 million of DOR’s common stock at the market price of $0.09 per share, which will be considered an advance payment to be deducted from upfront monies due to DOR by Sigma-Tau pursuant to any future orBec commercialization arrangement reached between the two parties.
orBec is a locally acting therapy tailored to treat the gastrointestinal manifestation of GVHD, the organ system where GVHD is most frequently encountered and highly problematic. orBec is intended to reduce the need for systemic immunosuppressive drugs to treat GI GVHD. orBec is formulated for oral administration as a single product consisting of two tablets; one tablet is intended to release BDP in the proximal portions of the GI tract, and the other tablet is intended to release BDP in the distal portions of the GI tract.