Can-Fite expands into Korea

A Korean pharmaceutical company received exclusivity to market CF101 as a rheumatoid arthritis treatment.

Can-Fite BioPharma Ltd. (TASE:CFBI), which is developing drugs for the treatment of inflammatory diseases and cancer, has signed a memorandum of understanding with a South sKorean pharmaceutical company for the commercialization in Korea of its CF101 drug for the treatment of rheumatoid arthritis.
The agreement is interesting by virtue of the fact the Korean company, which Can-Fite did not name in its announcement, is willing to receive exclusivity on CF101 solely for the treatment of rheumatoid arthritis, while the Israeli company intends to market it as a treatment for a range of indications. Can-Fite is currently conducting Phase Iib efficacy trials for the use of CF101 in the treatment of rheumatoid arthritis, the most advanced of all the studies underway. However, questions still remain about the drug.

Can-Fite failed to achieve statistical significance in the main variable during the previous trial of the drug two years ago. The company believes that the solvent used in the corresponding drug in that trial was itself effective in treating rheumatoid arthritis. Laboratory tests on the solvent confirmed that it could have a beneficial effect. Can-Fite has foregone the solvent in the current trial in the hope of showing a more noticeable difference between the group taking the drug and the control group.

Can-Fite already has an agreement with Japanese drug company Seikagaku Corporation (TSE: 4548) (SKK), which received exclusivity on CF101 in Japan only.

Can-Fite, which currently has a market cap of NIS 137 million, also published its financial report today. The company currently has NIS 25 million in cash, against a cash burn rate which stood at NIS 17.6 million at the end of the first half of 2008. Can-Fite posted NIS 994,000 revenue for the first half of the year, most of it on the agreement with SKK.

Can-Fite CEO Pnina Fishman told "Globes": "Every additional agreement for a company like us is good thanks to the commercial terms, and the further endorsement our technology gets as a result. The Korean company wanted to start the agreement with our most advanced product. It may expand it to further indications as well at a later stage."

Published by: Globes
www.globes.co.il
Gali Weinreb
01/09/2008

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