Propella Therapeutics, Inc. and Jiangsu Aosaikang Pharmaceutical Co. Ltd. (ASK Pharm) announced that the companies have entered into an exclusive licensing agreement for CGS-200-5, a clinical-stage topical treatment that is being developed for the treatment of pain in patients with moderate to severe osteoarthritis (OA) of the knee. Under the terms of the agreement, ASK Pharm will have exclusive rights to develop, manufacture and commercialize CGS-200-05 for the Greater China region.

As part of the agreement, Propella will receive an upfront payment and is entitled to receive regulatory and sales milestones, as well as royalties on future product sales. In a prior Phase 2 study (NCT#:03528369), four once-daily applications of CGS-200-5reduced pain by 50% for 90 days in patients with moderate to severe OA of the knee.