Cempra Inc (NASDAQ:CEMP) kicked into the New Year with a bang, by making announcement of its Phase 3 clinical trials of solithromycin by Toyama Chemical Co., Ltd. The FUJIFILM Holdings Corporation’s subsidiary, Toyama has exclusive R&D rights of Cempra’s solithromycin in Japan. Solithromycin is said to be Cempra’s lead product, which is licensed in Japan to the strategic commercial partner.
Why to focus on Japan?
Japan to antibiotic industry is one of the most important markets. Imagine not leveraging on the 2nd largest antibiotic market across the globe! By targeting Japan, Cempra will have an Asian base, which is not just great for the company, but also allows it to build a credible repute.
Among Cempra’s lead products, Solithromycin plays a vital role. This is an approved treatment for community-acquired bacterial pneumonia (CABP) among other respiratory infections. Toyama, which is the company’s strategic commercial partner, completed the Phase 2 multi-center double-blinded study of treatment in Japan. This included 135 patients. The trial fetched it positive results, thus preceding the treatment drug to Phase III.
Japan’s Pharmaceuticals and Medical Devices Agency (PMDA) have already given the nod to initiate Phase III after valid review. Cempra receives milestone payments every time Toyama announces something like this. During Phase III announcement, Cempra in the U.S. became eligible for $10 million milestone payment, which fetched it great applause from the investors too.
Cempra, as of now, has received a total amount of $70 million through this product in Japan. Given the importance of this product and also the country, Japan will indeed be important for Cempra.
Not only will it allow the company to have a solid Asian presence, but will also fetch it great revenues in the home. With a positive and profitable start to the New Year, Cempra has definitely started off the race with a lead. Will it be able to run off with distinction? We’ll let future decide this, while Cempra enjoys the initial weeks of New Year on a resourceful note.
