Ophthalmology company Nicox SA (Euronext Growth Paris:ALCOX) announced on Tuesday that its Japanese partner, Kowa, has received regulatory approval to initiate Phase 3 clinical trials of NCX 470 for ocular hypertension in Japan.

This milestone triggers a EUR1m payment to Nicox, with a further EUR2m expected upon trial initiation in the second half of 2025.

These payments, totalling EUR3m, are expected to extend Nicox's cash runway through the end of 2025.

Kowa holds exclusive rights to develop and commercialise NCX 470 in Japan, following a licensing agreement signed in February 2024.

Nicox may receive an additional EUR7m in development and regulatory milestones, up to EUR17.5m in sales milestones, and royalties of 7% to 12% on Japanese net sales.

Kowa is fully responsible for development, regulatory and commercialisation costs in Japan.

NCX 470, a nitric oxide-donating bimatoprost eye drop, is Nicox's lead candidate. It is currently in a Phase 3 trial in patients with open-angle glaucoma or ocular hypertension, with topline results expected in the third quarter of 2025.