EVEREST MED (ASX: 01952) has announced the signing of an agreement with Dimerix Limited, a company listed on the Australian Securities Exchange under the ticker DXB.

Under the terms of the deal, Dimerix has granted an irrevocable, exclusive license to EVEREST MED for the development and commercialization of DMX-200 across Greater China, South Korea, and several Southeast Asian nations.

DMX-200 is a small molecule inhibitor targeting the chemokine receptor 2 (CCR2). The drug candidate is currently undergoing the pivotal ACTION3 Phase 3 clinical trial for the treatment of focal segmental glomerulosclerosis.

DMX-200 has already been granted Orphan Drug designation by both the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA).

The financial obligations for EVEREST MED under this exclusive license include an upfront payment of US$10 million.

Additionally, the company is liable for potential development and regulatory milestone payments that could reach up to US$30 million.

Further potential sales milestone payments could total up to US$300 million.

The agreement also stipulates potential tiered royalty payments on future annual net sales, ranging between 10% and 15%.

This transaction is anticipated to significantly strengthen EVEREST MED's nephrology-focused product portfolio and enhance pipeline synergies.

It is also expected to solidify the company's strategic position within the fields of kidney and autoimmune diseases.