Dare Bioscience Inc (NASDAQ: DARE) is having a great day in the market today, and for good reason. The company announced that it has entered into definitive licensing agreements. Of course, the news excited investors, sending the stock screaming for the top. Today, we’ll talk about:
- The licensing agreements;
- what we’re seeing from DARE stock as a result; and
- what we’ll be watching for ahead.
DARE Gains On Licensing Agreements
As mentioned above, Dare Biosciences is having an incredibly strong start to the trading session this morning after announcing licensing agreements. In a press release issued early this morning, the company announced that it has entered into definitive agreements with Hammock Pharmaceuticals, TriLogic Pharma and MilanaPharma.
Under the terms of the agreements, DARE has acquired the global rights to MP-101. The drug is being developed as a treatment option for bacterial vaginosis (BV). The company also acquired the rights to utilize the underlying proprietary hydrogel drug delivery technology for any vaginnal or urological application in humans.
In the release, DARE said that it expects to commence a Phase III clinical study of the drug in the second half of 2019. Of course, if the study is successful, it will position the company to submit a New Drug Application with the United States Food and Drug Administration. At the moment, BV therapies typically have a success rate of less than 70%. However in an investigator initiated pilot study of the drug in 30 women, the drug demonstrated an 88% cure rate with a single administration.
As part of the agreement, paid one-time upfront fees of $275,000 and will pay one-time deferred fess of $450,000 within one year. In addition, the company has agreed to make potential future mylestone payments through the term of the license based on clinical, regulatory, commercial launch and sales events as well as royalties.
In a statement, Sabrina Martucci Johnson, President and CEO at DARE, had the following to offer:
We believe this Phase III program will allow us to move into a leadership position in an area of great concern for both women and healthcare providers… Studies suggest that nearly 20 million women in the U.S. experience BV and many suffer from episodes of recurrence. Current standard of care is oral antibiotics taken either once or over the course of several days, which can have systemic side effects, or antibiotics delivered vaginally in creams or gels, typically over the course of several days . If a cure rate consistent with the pilot study is demonstrated in the Phase III program, MP-101 has the potential to provide a significant improvement in efficacy over currently marketed BV therapies and enhanced convenience for women.
The above statement was followed up by William R. Maichle, CEO at Hammock Pharmaceuticals. Here’s what he had to offer:
Hammock is excited to announce our partnership with Daré Bioscience. The transaction allows Hammock to focus on our OTC products and to potentially recognize value from MP-101 and the novel hydrogel technology. We look forward to working with the Daré and MilanaPharm teams on the transition and the lead product candidate and possibly other product candidates incorporating the hydrogel technology.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. In the case of Dare Biosciences, the news proved to be overwhelmingly positive. After all, the licensing agreement brings a new, late-stage asset to the company, one that could move into commercial phases should the Phase 3 clinical trial go well. So, it’s not surprising to see that excited investors are sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:00), DARE is trading at $1.10 per share after a gain of $0.25 per share or 29.85% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on DARE. In particular, we’re interested in following the development of the newly licensed MP-101 as well as the rest of the company’s impressive pipeline. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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