Oasmia Pharmaceutical AB (STO:OASM) announced on Wednesday that the company and Elevar Therapeutics Inc, a US-based biopharmaceutical company, have signed a global strategic partnership deal regarding the commercialisation of Oasmia's anti-cancer product, Apealea.

This agreement includes milestone payments of up to USD678m, depending on Elevar's achievement of future sales milestones, clinical development milestones and regulatory approval milestones. Also, Elevar will also pay Oasmia double-digit royalties on sales of Apealea and Oasmia will receive USD20m as an upfront payment.

This worldwide partnership between Oasmia and Elevar grants Elevar the exclusive right to commercialise Apealea, a proprietary formulation of paclitaxel, in all global territories, with the exception of countries in which Oasmia and its partners are already present including the Nordics, Baltics, Russia and some other CIS countries in which Oasmia and its partners will continue to drive the commercialisation of the product. This arrangement gives Elevar the right to sub-license Apealea to other strategic partners, including, for example, in Europe.

Elevar will be responsible for all regulatory application processes in its territory, including the submission of the approval application to the FDA in the US.

In addition, this collaboration between the two companies will include a joint steering committee and working teams in order to optimise the global development, launch and commercialisation processes. Reportedly, this partnership will build upon Oasmia's product development strategy for Apealea and exploring possible new indications.

Oasmia will remain in sole control over, and will continue to develop, its proprietary technology platform XR17 for use with active pharmaceutical ingredients other than paclitaxel.

Oasmia Pharmaceutical AB develops, manufactures, markets and sells an improved generation of drugs within human and veterinary oncology.