Pharmaceutical company TaiwanJ Pharmaceuticals reported on Monday the launch of a USD26m contract to license out its drug candidate JKB-122 to Newsoara Biopharma for further development in Asia.

JKB-122, TaiwanJ's effective phase 2 nonalcoholic fatty liver disease (NAFLD)/nonalcoholic steatohepatitis (NASH) drug candidate, had been licensed out to Newsoara Biopharma Co Ltd, based in Shanghai. JKB-122 is a small molecule and a long-acting TLR4 antagonist showing anti-fibrotic, immuno-modulating, and anti-inflammatory effects for the treatments of Non-Alcoholic Fatty Liver Disease (NAFLD), Autoimmune Hepatitis (AIH) and Non-Alcoholic Steatohepatitis (NASH).

A drug development company, Newsoara Biopharma will be responsible for the clinical development and market commercialisation of JKB-122 in Asia, except Taiwan.

Under the terms of the agreement, TaiwanJ will receive USD2m of upfront as well as up to USD24m of milestone payments, which will be paid when each milestone in the development and commercialisation process is achieved.

The partnership will conduct preclinical research for JKB-122's second generation compound JKB-133.

In conjunction with the agreement, TaiwanJ will maintain its right of global clinical development and subsequent worldwide market commercialisation.