Roivant Sciences, a company that in-licenses late-stage drug candidates and develops them through subsidiaries, has signed a strategic development and license contract with France-based Poxel, it was reported yesterday.

The agreement has been signed for Imeglimin, an investigational oral therapy that has been developed by Poxel for the potential treatment of type two diabetes, in the US, Europe and all other countries not covered by Poxel's present agreement in East and Southeast Asia. The collaboration allows Roivant to add a late-stage development program to its range and Poxel receives a strategic development and licensing agreement for imeglimin beyond the company's partnership with Sumitomo Dainippon Pharma.

According to the terms of the contract, Poxel is entitled to receive an upfront payment of USD35m and Roivant will invest USD15m in Poxel through a subscription to 1,431,399 newly-issued ordinary shares at EUR8.5 per share. Poxel is entitled to receive potential future development and regulatory milestone payments and sales-based payments of up to USD600m subject to the successful clinical development and commercialisation of imeglimin. Also, after launch, Poxel will be entitled to double-digit royalties on net sales. Roivant will be responsible for development and commercialisation costs and Poxel will contribute USD25m to the development program. The parties will decide on a potential co-promotion prior to commercialisation.