Nuformix inks cannabinoid therapeutics deal with Ebers Tech

Pharmaceutical development company Nuformix has inked an agreement for cannabinoid therapeutics development, licensing and commercialisation with Canadian outfit Ebers Tech.

Nuformix's deal with Ebers will see the London-listed group receive up to £51m in upfront, R&D and milestone payments, plus long-term royalties of 20% of net sales moving forward.

Under the terms of the agreement and the expected development timeline, Nuformix told investors it would receive "a significant upfront payment" and believes it will earn further R&D and early-stage milestone payments up to a total of £1m during 2019.

Further pre-clinical and clinical milestone payments were projected for 2020 and 2021, in addition to the royalty payments.

Nuformix will be responsible for early-stage R&D activities and Ebers will be responsible for late-stage development, clinical programmes and commercialisation.

Chief executive Dr Dan Gooding said: "The agreement allows Nuformix and its shareholders to benefit immediately from the upside of this attractive market without exposure to development and commercialisation risk.

"We are able to focus on developing our clinical and early-stage portfolios as planned, whilst generating significant near term revenue via attractive development milestones and a strong royalty component."

As of 1230 BST, Nuformix shares had lit up 38.89% to 3.75p.