Henderson Morley signs deal with un-named dermatology company

Drug discovery company Henderson Morley has signed a term sheet with "an un-named dermatological pharmaceutical company based in the US" for a potential licensing deal on the topical patch formulation of its Ionic Contra Viral Therapy (ICVT) technology P1723.

Henderson Morley, based in Birmingham, UK, has said that it expects the technology to be used for the production of licensed products for the treatment of all non-genital warts, including plantar warts or verrucae, and seborrhoeic keratoses in humans, a wart-like skin condition found most often in the elderly.

The term sheet - which contains certain binding clauses, including a lock-out period - gives both parties 90 days to complete a licence. It states that the licence territory will cover the US, Canada and Mexico and that the licensee will "fund and use all reasonable efforts to bring the licensed products to market through a programme which includes the preclinical and clinical development of the treatment including r&d, manufacture, laboratory and clinical testing, and marketing of the licensed products." Henderson Morley is eligible to receive milestone, development and commercialisation payments.

Commenting on the announcement, Andrew Knight, chairman of Henderson Morley said: "The granting of this licence will be a major step forward for the company. We believe it will set the parameters from which to secure further licences for other applications of the technology."

The company's share price rose 18% to 2.3pence following the announcement.