RegeneRx Biopharmaceuticals reported the launch of an agreement to develop RGN-259 for dry eye syndrome and neurotrophic keratitis (an orphan indication) in the US in partnership with G-treeBNT Co. This joint venture (JV) agreement allows G-treeBNT to conduct and fund all clinical trials and product development through approval of a new drug application (NDA). Under the license agreement, RegeneRx granted the JV an exclusive, royalty-bearing license to market and sell it's RGN-259 in the US as well as contributed all of its non-clinical and clinical data generated to date.

G-treeBNT will hold a majority equity stake in the JV that will increase as it successfully reaches development milestones. In addition, RegeneRx has the right to approve key product licensing, mergers or acquisitions; receive a total of USD 1 million in two tranches, as well as royalties ranging from high single digits to low double digits, depending on medical indications approved and if the JV's ophthalmic product candidates are commercialised internally or through a third party; retain a significant equity position in the JV; and will not be required to provide any funding for the venture.