Italian drugmaker Recordati is shelling out 10 million euros for access to US group Nymox Pharmaceutical’s experimental enlarged prostate drug NX-1207 in Europe, causing the latter’s shares to rocket more than 60%.

The companies have signed a European licensing agreement for the development and commercialisation of the drug, which Nymox is currently assessing in a Phase III clinical development programme in the US for benign prostatic hyperplasia, a condition that affects around half of men aged over 50 years.

Under the terms of the deal, Recordati will pay Nymox 10 million euros (around $13 million) upfront as well as a stream of approval and sales-based milestones payments. Further down the line, the groups have agreed to tiered supply and royalty payments, starting at 26% but increase progressively up to 40% of total net sales if specific conditions are met.

In return, the Milan, Italy-headquartered group will gain exclusive rights to develop and commercialise NX-1207 for BPH in a total of 81 countries in Europe, Russia and the CIS, the Middle East, the Maghreb area of North Africa and South Africa.  

According to Giovanni Recordati, chairman and chief executive of Recordati, the inclusion of NX-1207 in the firm’s development pipeline is “very important and in line with our commitment to increase the availability of new effective treatments for urological disorders”.

And explaining Nymox’ interest in the deal, chief executive Paul Averback, said the company considers Recordati “to be an ideal partner in Europe” for the drug, as it “has a long history in Europe of clinical, regulatory and commercial expertise and has provided a strong commitment to the development and marketing of NX-1207”.