PolyPid, Azurity sign surgical site infection drug deal

D-PLEX100 is designed to provide local prolonged and controlled anti-bacterial activity directly at the surgical site with the goal of preventing abdominal surgical site infections.

The partners may agree to jointly pursue potential label expansion of D-PLEX100 in the U.S. and Canada into additional infections beyond abdominal, with Azurity providing funding.

PolyPid will retain global commercial rights to D-PLEX100 outside of the U.S. and Canada, manufacturing rights worldwide, and full ownership of its PLEX platform, its own Kynatrix technology and associated pipeline assets.

"This partnership is a defining step in PolyPid's transition into a commercial-stage company," PolyPid CEO Dikla Czaczkes Akselbrad said in a statement.

Israeli biotech PolyPid said on Tuesday it had agreed a deal with Azurity Pharmaceuticals to commercialize a drug aimed at preventing surgical site infections in the U.S. and Canada, under which it could receive more than $320 million.

PolyPid said it will receive $15 million due upon signing and an additional near-term milestone payment of $15 million payable upon U.S. Food and Drug Administration acceptance of its D-PLEX100 new drug application, which is expected next month.

The Israeli company said it would be eligible to receive up to some $300 million in additional regulatory, development and sales-based milestone payments. Upon commercialization of the drug, PolyPid will produce and supply D-PLEX100 to Azurity for a transfer price and will be entitled to tiered royalties.