Propella Inks Licensing Deal for OA Drug with China’s ASK Pharm

Pittsboro-based startup Propella Therapeutics is looking to China as a market for its new osteoarthritis treatment.

The company has entered into an exclusive licensing agreement with Chinese pharma company Jiangsu Aosaikang Pharmaceutical Co. Ltd. (ASK Pharm) for CGS-200-5. The clinical stage topical pain therapy is for patients with moderate to severe osteoarthritis (OA) of the knee.

Under the agreement, ASK Pharm will have exclusive rights to develop, manufacture and commercialize the product for the Greater China region. Propella will receive an upfront payment and compensation for regulatory and sales milestones, as well as royalties on future product sales. 

“We are pleased to enter this licensing agreement with Jiangsu Aosaikang Pharmaceutical,” said William Moore, Ph.D., Propella’s president and CEO. “Today’s announcement reflects our strategy to partner non-oncology pipeline assets with leading companies who have the expertise to maximize their value in select territories.”

Propella said there are currently no approved treatments that effectively manage moderate to severe OA knee pain without significant concerns around safety, tolerability, effectiveness or addiction potential. The topical application of CGS-200-5 has been shown in phase 2 clinical studies to significantly reduce OA knee discomfort and has a good safety and tolerability profile, according to the company.

Tingting Song, chief strategy officer of ASK Pharm, said chronic disease therapies are included in her company’s four areas of strategic focus. “OA is one of the most prevalent conditions resulting in disability, particularly in the elderly population in China,” she added. “CGS-200-5 meets the significant unmet need and market demand for topical long-lasting pain relief for knee osteoarthritis.”

ASK, founded in 2003, specializes in digestive disease, multi-drug resistant infection, oncology and chronic disease.

Propella was created in 2020 as part of a strategic reorganization of Maryland-based Vizuri Health Sciences, LLC. The company has traditionally focused on finding and improving upon off-patent medications that are likely to qualify for the U.S. Food and Drug Administration’s 505 (b) (2) program. This pathway streamlines the development and authorization of new pharmaceutical products that use already approved active pharmaceutical ingredients.

Propella said it is dedicated to meeting the needs of cancer patients underserved by existing standards of care. It has advanced a platform that combines medicinal chemistry with lymphatic targeting to deliver therapies directly to lymph nodes, bone and other tissues. The company currently is developing a treatment for metastatic prostate cancer.