Adamis Pharmaceuticals has entered into an agreement to exclusively license and, with additional payment, fully acquire 3M Drug Delivery Systems' Taper Dry Powder Inhaler (DPI) technology, which is under development for the treatment of asthma and chronic obstructive pulmonary disease (COPD).
As a part of the agreement, Adamis will obtain worldwide rights to use this platform technology in all indications in the dry powder inhalation field. The unique design uses proprietary 3M technology to store API on a microstructured carrier tape. 3M Drug Delivery Systems will supply the drug delivery tape for the platform to Adamis under a separate supply agreement.
In its current stage of development, 3M Taper Dry Powder Inhaler combines patient-friendly design and active aerosolization to provide effective delivery of drug in a multi-dose DPI, according to 3M. The company also contends the system can be used with single or combination drugs, virtually eliminate the need for complex powder treatments or lactose in most formulations, hold as many as 120 doses in a pocket-sized design, handle API dose ranges up to 1 milligram, protect against moisture ingress, utilize patented 3M breath-actuated technology with simple open-inhale-close functionality, and integrate a dose counter to ensure patients know how many doses remain.
The Taper DPI inhaler was being developed by 3M Drug Delivery Systems to compete with other dry powder inhalers such as GlaxoSmithKline's Advair Diskus. Upon completion of development and clinical activities required to obtain required regulatory approval, Adamis will seek to compete for a share of the Advair market with a branded generic version utilizing 3M's Taper DPI technology.
Current data indicates the platform technology has the potential to be compatible with a wide range of formulations; Adamis plans to pursue a number of other important drug candidates that could substantially increase the potential value of this transaction to Adamis and its shareholders. Adamis made an initial payment of $3 million to exclusively license the Taper technology through December 31, 2013. The company can acquire the technology for an additional $7 million before that date.
Dr. Dennis J. Carlo, president and chief executive officer Adamis, commented, "There are a limited number of companies that have the capability to develop this type of novel inhalation drug delivery technology, and 3M is considered one of the leaders. To date, there is no low-cost alternative to Advair. We believe that the exclusive license and acquisition of the 3M Taper DPI technology provides Adamis with a blockbuster opportunity in the branded generic asthma/COPD market, where even a small market share could generate a very large potential return on investment for Adamis shareholders. This technology strengthens the company's respiratory product pipeline and has the potential to provide solid growth for Adamis for years to come and I believe the acquisition of this pivotal technology could be a transforming event for our company."