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Nicox - Chinese partner Ocumension files Zerviate NDA

Nicox has announced that its Chinese partner, Ocumension Therapeutics, has submitted a New Drug Application (NDA) to commercialise Zerviate (cetirizine ophthalmic solution, 0.24%) in China, for ocular itching associated with allergic conjunctivitis. Ocumension expects the review process to take around 12 months, leading to a potential launch in China in 2024. Ocumension estimates that Zerviate could potentially deliver $100m in annual sales in China within seven years. Nicox itself would be entitled to royalties between 5% and 9% of net Zerviate sales by Ocumension, as well as sales milestones up to $17.2m. We see the advancement of the Zerviate NDA as a positive development, as it should translate into an additional royalty stream for Nicox provided the Chinese NDA is approved. We believe the drug has a high likelihood of approval given that it is also approved in the US (and commercialised by Nicox’s US partner, Santen), and are also encouraged by Ocumension’s commitment to commercialising the product, as evidenced by it funding and completing its own Phase III studies in China on Zerviate.