Pulmatrix Inc (NASDAQ: PULM), a clinical stage biopharmaceutical company focused on developing novel inhaled therapeutics to serve unmet needs in respiratory disease, has signed a definitive agreement with Cipla Technologies LLC, a subsidiary of India-based Cipla Limited (BSE: 500087; NSE: CIPLA EQ), along with its subsidiaries, affiliates and joint ventures.

It was reported yesterday that the contract has been signed for the co-development and commercialisation of Pulmazole (PUR1900), an inhaled iSPERSE formulation of the anti-fungal drug itraconazole for the treatment of allergic bronchopulmonary aspergillosis in patients with asthma.

Following the Definitive Agreement, Cip Tec will make an upfront payment of USD22m to Pulmatrix in exchange for assignment of all rights for Pulmazole in relations to pulmonary indications to Cip Tec. Both firms will equally share costs related to the future development and commercialisation of Pulmazole and equally share global free cash flow from future sales of Pulmazole. Pulmatrix will remain primarily responsible for the execution of the clinical development of Pulmazole, and Cip Tec will be responsible for the commercialisation of the product. The partnership will be managed by a Joint Steering Committee with equal representation from both companies.