Medicox (KOSDAQ: 054180), a South Korea-based pharmaceutical R&D company, announced on Friday that it has entered into an exclusive distribution contract with Israel-based Oramed Pharmaceuticals (NASDAQ: NSANY), on the oral insulin license.

Under the agreement, Medicox received an exclusive right to distribute the oral insulin in South Korea for 10 years after receiving approval from the Ministry of Food and Drug Safety on Oramed's oral insulin candidate (ORMD-0801). The product is presently under phase three of US FDA approval, and top line results will be revealed on January 2023. It has the potential to be the first commercial oral insulin capsule to treat diabetes.

The deal is valued at up to USD18m and includes the developmental milestone option (prepayment of USD2m). Medicox is to pay Oramed a royalty of up to 15% on sales generated by oral insulin distribution in South Korea.