Durham drug developer Scynexis has signed a licensing agreement with a pharmaceutical company in China giving it worldwide rights to develop and commercialize one of its compounds.
Scynexis may also receive a milestone payment of $4 million upon the first registration of a product, as well as royalties based on future sales.
Scynexis, which spun out of Aventis in 2000, does not have a drug on the market. It's most promising drug candidate is SCY-078, a treatment for serious and life-threatening fungal infections. That experimental drug stemmed from a collaboration between Scynexis and pharmaceutical giant Merck. Last year Merck returned the development and commercialization rights to Scynexis.
Scynexis raised $40 million from an initial public offering in early May after deducting fees and expenses and paying off a $15 million credit line.
The company's shares were at $8.68, up 8 cents, in mid-morning trading. Scynexis stock began trading at $10 in May.