Northwest Biotherapeutics (NWBio) (OTCQB:NWBO), a biotechnology company developing DCVax personalised immune therapies for solid tumour cancers, announced on Thursday that it has entered into a non-binding Memorandum of Understanding (MOU) with the Saudi Pharmaceutical Industries and Medical Appliance Company (SPIMACO) for a collaboration to bring the company's DCVax-L products and technology to Saudi Arabia.

SPIMACO is a pharmaceutical company with a leading presence in 21 markets across the Middle East North Africa (MENA) region.

The MOU establishes a general framework for discussions for a potential collaboration regarding the approval, commercialisation, supply and technology transfer of NWBio's DCVax-L product for glioblastoma brain cancer in Saudi Arabia. The company says that over time, the collaboration may expand by mutual agreement to include DCVax-L products for other indications in addition to brain cancer, and may expand to include other territories, such as Gulf Cooperation Council (GCC) countries.

The collaboration is based on a revenue sharing model. Subject to the execution of definitive agreements, the parties currently contemplate that SPIMACO would be responsible for interfacing with the Saudi Food and Drug Authority (SFDA), including the application for approval of DCVax-L for glioblastoma, and would be expected to serve as the company's commercial partner responsible for marketing, sales and distribution. NWBio will provide the data and documentation for regulatory purposes, and will provide scientific support. It will also produce and supply the DCVax-L products. NWBio retains all ownership of all intellectual property.

The MOU also recognises that localisation and technology transfer are key parts of the contemplated collaboration. Under its Vision 2030 national plan, Saudi Arabia is becoming a regional and global hub for life sciences and biotechnology. Accordingly, the MOU provides for the parties to negotiate a license and technology transfer arrangement that will lead to enablement of localised manufacturing of DCVax-L in Saudi Arabia. The parties will negotiate separate agreements for that stage.