Aurealis to receive up to $139 million in collaboration agreement

Aurealis Therapeutics is a Swiss-Finnish private clinical-stage synthetic biology company focusing on the development of lactic acid bacteria-based GMO cell and gene therapies. The company’s lead clinical asset, AUP-16, is the first-in-class four-in-one cell and gene therapy drug for chronic wounds and other inflammatory degenerative diseases. The product is based on proprietary technology involving genetically engineered lactic acid bacteria acting like millions of small immune-activating bioreactors in the human tissue and producing multiple human therapeutic proteins into the target tissue to effectively and safely re-educate the distorted host immune microenvironment to the proper state.

The 2018-founded biotech and Xbiome, a China-based AI-based microbiome drug development company, have entered into an exclusive license and collaboration agreement for the clinical development and commercialization of AUP-16 in Greater China. Under the terms of the license and collaboration agreement, Xbiome acquires exclusive development and commercial rights for all human use to Aurealis clinical-stage DFU drug candidate AUP-16 in Mainland China, Hong Kong, Macao, and Taiwan. Xbiome will be responsible for all clinical and other development, regulatory submissions, and commercialization of the licensed products in the licensed territory.

Aurealis retains full rights to AUP-16 outside of the specified territory, and it will continue to lead the global development of the drug candidate. The companies will collaborate on the joint development for DFU and potentially on other selected indications. As consideration for the agreement, Aurealis will receive an upfront payment, development milestone payments, and is eligible to receive commercial milestone payments and royalties on product sales, which all taken together could amount to a total consideration of $139 million, plus single to double-digit ascending royalties on product sales.

“At Aurealis, we develop truly novel GMO cell and gene therapies to improve the lives of millions of patients worldwide. DFUs and other chronic wounds not only cause great pain, but also enormous costs to society. We are very excited to collaborate with Xbiome and work together to develop a unique cure for these conditions with rapidly growing prevalence in China and around the world. We are honoured to embark on this journey together with our colleagues at Xbiome”, said Roger Meier, Aurealis Chairman of the Board.

(Press release/RAN)