Tel-Aviv based biotechnology firm Biomas has signed a head of agreement covering research and licensing with a major drug company.
The pharma will test the medical potential of the molecules Biomas develops. The drug company will have the exclusive right to decide whether to continue with the tests and whether to sign a binding agreement with Biomas.
The drug company will also get an exclusive license to manufacture and market products based on Biomas' patented molecules, for which it will pay royalties on sales.
The startup, controlled by Tel Aviv-traded Mivtach Shamir Holdings, has developed a molecule that it calls AS-101. Its biological activity is related to the immune system. Its product is in advanced stages of research.
Last year Mivtach Shamir invested $1 million in Biomas, in return for a 50% stake.