Immuron signs distribution deal worth up to $113 million

Shares in biopharma Immuron (ASX:IMC) rose nearly 20% after the company announced a distribution deal covering several markets for its flagship OTC diarrhoea preventative treatment.

Canadian pharmaceutical company Paladin Labs has become the exclusive distributor for Immuron's Travelan travellers' diarrhoea treatment in Canada, Latin America and sub-Saharan Africa.

Under the partnership terms, Immuron will be entitled to an upfront license fee of C$500,000 ($482,000), and to potential milsetone payments of up to C$115 million over the course of the deal.

Paladin has also agreed to provide Immuron with up to C$1.5 million in the form of a convertible debenture. Immuron has announced plans to put the funds towards the commercialisation of Travelan, as well as future product development.

Immuron will retain all production and manufacturing rights for Travelan in the territories covered.

Immuron CEO Joe Baini called the deal “an important step in our expanded market-focused commercialisation strategy” for Travelan and other products.

He said the treatment had also been selling well in Australia through local distribution partner Nycomed.

Travelan is a dairy-derived polyclonal antibody product targeting enterotoxigenic E. coli, the leading cause of travellers' diorrhea. It is Immuron's first and only product on the market.

The company is also in clinical trials for several other polyclonal antibody products using the same platform, aimed at addressing diseases including type 2 diabetes, influenza and HIV.

Immuron (ASX:IMC) shares were up 18.6% to $0.51 as of 11:30am on Tuesday.