Kubota Pharma pencils deal to form JV to develop ophthalmic products

Japanese clinical-stage firm Kubota Pharmaceutical Holdings (TYO: 4596) and SBI Holdings, a financial services and asset management company based in Japan, have signed a non-binding letter of intent (LOI) to establish a joint venture that will organize and manage special purpose entities to finance the development of ophthalmic drugs and devices.

The LOI contemplates that the joint venture will be funded 51% by Kubota Pharma and 49% by SBI. Kubota Pharma and SBI have entered negotiations for a definitive JV agreement.

Concurrent with the negotiation of the deal, the parties intend to negotiate a separate definitive agreement to establish and fund the joint venture’s first special purpose entity, which is expected to be focused on mobile healthcare (mHealth) applications in the field of ophthalmology. In addition, through this first special purpose entity, Kubota Pharma will explore potential development and commercialization synergies between the mHealth platform and its drug product candidates already in development.