Kitov Pharma (NASDAQ: KTOV) is having an incredibly strong day in the market today, and for good reason. The company announced that it has entered into a marketing and distribution agreement, exciting investors and sending the stock on a run for the top. Today, we’ll talk about:
- The marketing and distribution agreement news;
- what we’re seeing from KTOV stock as a result; and
- what we’ll be watching for ahead.
KTOV Announces Marketing And Distribution Agreement
As mentioned above, Kitov Pharma is having a great start to the trading session this morning after the company announced that it has entered into a new agreement. In a press release issued early this morning, the company announced that it has signed an exclusive marketing and distribution agreement with Coeptis Pharmaceuticals. The agreement surrounds the marketing and distribution of Consensi in the United States. The treatment is intended to treat osteoarthritis pain and hypertension simultaneously.
Under the terms of the agreement, KTOV will be entitled to milestone payments of $3.5 million. In the release, the company said that it has already received the initial milestone payment upon the execution of the agreement. The company will also be entitled to receive additional milestone payments once the CMC plan is complete and upon the first commercial sales in the United States.
The agreement also stipulates that KTOV will recieve royalties of 40% to 60% on net profit on Consensi sales. The agreement spans a term of fifteen years and may be extended for additional two-year terms including customary provisions.
In the release, the company reminded investors that Consensi is under patent protection until 2030 and that the product is expected to be launched in 2019. Once launched the product will be the only NSAID whose labeling indicates as reduction of blood pressure and consequent risk reduction of hear attack, stroke and death.
In a statement, Isaac Israel, CEO at KTOV, had the following to offer:
This commercialization structure for Consensi™ is one that we believe optimizes Kitov’s near and long-term cash flows, enabling us to continue to develop and deliver additional innovative pharmaceuticals, while maximizing ROI for our shareholders. We are very pleased by the opportunity to work with Coeptis and its outstanding team of executives with strong track records in the pharmaceutical industry and look forward to Consensi™ creating better patient compliance and improved treatment for people living with osteoarthritis pain and hypertension. In the U.S., an estimated 44% of adults have both hypertension and osteoarthritis. Currently, these patients are not well served. We believe that successful commercialization of Consensi™ in the U.S. will be a transformational value-creating event for Kitov.
The above statement was followed up by David Mehalick, CEO at Coeptis. Here’s what he had to offer:
Consensi™ will substantially improve treatment for patients living with two highly prevalent chronic conditions, delivering improved clinical outcomes and enhanced economics for healthcare providers. We anticipate launching Consensi™ in the second half of 2019 and expect to have it widely available to the millions of Americans who can benefit from this combination treatment.
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 Kitov Pharma, the news proved to be overwhelmingly positive. After all, the agreement has already brought funding through the door and has the potential to generate serious revenue. So, it’s not surprising to see that excited investors are pushing the stock on a run for the top in the market today. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:31), KTOV is trading at $1.15 per share after a gain of $0.40 per share or 53.33% 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 KTOV. In particular, we’re interested in following the story surrounding the newly signed agreement and the revenue it generates. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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