Santhera Pharmaceuticals Holding AG (SWX: SANN) has entered into a licence agreement with Polyphor Ltd for its clinical stage candidate, POL6014, the Swiss company announced on Thursday.

POL6014 is a clinical stage selective inhibitor of human neutrophil elastase with the potential to treat cystic fibrosis (CF), as well as other neutrophilic pulmonary diseases, such as non-cystic fibrosis bronchiectasis (NCFB), alpha-1 antitrypsin deficiency (AATD) and primary ciliary dyskinesia (PCD).

Santhera will become responsible for the global development, regulatory filings and commercialisation of POL6014.

It hopes to be able to expand its product pipeline in pulmonary diseases with POL6014. The company is already working on the development of its lead product idebenone for respiratory complication in Duchenne muscular dystrophy.

The terms of the agreement will see Santhera obtain the worldwide, exclusive licence rights to develop and commercialise POL6014 for an initial payment of CHF6.5m which is payable in Santhera shares at an agreed valuation of CHF27.2053 per share. There will also be additional payments of up to CHF121m, depending on the achievement of development, regulatory and sales milestones. Polyphor will also be entitled to receive tiered royalty payments on future net sales of POL6014. If Santhera advances development and market entry in other pulmonary diseases, ISA will also receive undisclosed milestone payments and royalties.