US-based biopharmaceutical company Pulmatrix Inc on Tuesday said it has sorted out a funding dispute with drug major Cipla regarding Pumazole, an underdevelopment medication for asthma. In 2019, Cipla and Pulmatrix Inc had inked a pact to co-develop a formulation for the treatment of allergic bronchopulmonary aspergillosis (ABPA) in patients with asthma. Cipla Technologies LLC, a subsidiary of the company, and Pulmatrix Inc had inked a definitive agreement for the co-development and commercialisation of Pulmazole.

Pulmazole is an inhaled iSPERSE formulation of the antifungal drug itraconazole for the treatment of allergic bronchopulmonary aspergillosis (ABPA) in patients with asthma. In a statement issued on Tuesday, Pulmatrix Inc said that it has completed an amendment to the earlier agreement for the development and commercialisation of Pulmazole.

"The completion of the amendment resolves Pulmatrix's previously disclosed dispute with Cipla regarding the continued funding of the development costs for Pulmazole," it added. Pursuant to the second amendment, Cipla will continue to reimburse Pulmatrix for 50 percent of all third-party costs for the development of Pulmazole, the firm said.

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Upon the timely achievement of certain development milestones, Cipla will reimburse another 10 percent of Pulmatrix's "direct costs'', it added. The development milestones for Pulmatrix's planned Phase 2 clinical trial include the dosing of 25 percent of participants in the clinical trial by June 30, 2023, and the delivery of top-line data results to the joint steering committee for the programme by June 30, 2024. "If the development milestones are not achieved within 9-months of such dates either party may terminate its obligation to fund its share of development costs," Pulmatrix Inc said.

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The US firm said it has also granted Cipla exclusive rights to the development and commercialisation of Pulmazole in India, Nepal, Yemen, Iran, South Africa, Sri Lanka, Myanmar and Algeria in exchange for, under certain circumstances, 2 percent royalties on the net sales. "We are pleased to have come to this resolution, which will enable the continued development of Pulmazole globally with our valued partners at Cipla," Pulmatrix CEO Ted Raad said.