The firm will pay TFF up to $210 million related to option exercise, development, and commercial milestones, as well as tiered single-digit royalties on product sales, according to a press release.

Why focus on niclosamide? The Institut Pasteur Korea recently identified niclosamide as a potent inhibitor of SARS-CoV-2. Union Therapeutics is conducting a phase I clinical trial of an optimized salt form of the compound developed as a potential inhalation treatment for COVID-19.

As for TFF, it has developed alternative oral and inhalation versions of niclosamide based on research from the University of Texas and its patented formulation technology. Under the agreement, Union Therapeutics will acquire an option to obtain a worldwide exclusive license to the technology and rights relating to the formulations of niclosamide for the treatment of COVID-19.

Because Union Therapeutics' Uni911 is already progressing through clinic development, the agreement with TFF has the potential to broaden Union Therapeutic's niclosamide product offering.