Cocrystal Pharma, Inc. - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K was filed by Cocrystal Pharma, Inc. on February 18, 2020, regarding events occurring on that date. The Company is a Delaware corporation with its principal executive offices in Bothell, WA, and its common stock trades on The Nasdaq Capital Market under the symbol "COCP".
Key Financial Metrics
The filing does not provide comprehensive financial statements, revenue, profit, cash flow, or margin data. Specific financial obligations disclosed in this report include:
- License Initiation Fee: $80,000 (one-time, non-refundable).
- Annual Maintenance Fee: $20,000 per year.
- Reimbursements: Third-party expenses for patent filing, prosecution, and maintenance.
- Future Milestone Payments: Up to $3.1 million contingent on clinical trial progress, regulatory approvals, and commercial sales initiation.
Material Changes
The primary material change reported is the entry into a Material Definitive Agreement. On February 18, 2020, the Company entered into a License Agreement with Kansas State University Research Foundation (effective February 12, 2020). This agreement grants the Company an exclusive, royalty-bearing license for human use to practice certain patent rights covering antivirals against coronaviruses and norovirus.
Outlook, Risks, and Management Commentary
The agreement enables the Company to make and sell therapeutic, diagnostic, and prophylactic products based on the licensed technology. The agreement remains in effect until the expiration of the covered patent rights unless terminated earlier. Future financial outflows are contingent upon specific milestones, including the progress of clinical trials and regulatory approvals in the United States and select international markets.
Key Facts for Investor Verification
- Verify the specific scope of the patent rights and know-how licensed from Kansas State University Research Foundation.
- Confirm the Company's current cash position to ensure it can meet the immediate $80,000 initiation fee and ongoing maintenance costs.
- Monitor the Company's clinical trial pipeline to assess the likelihood of triggering the potential $3.1 million in milestone payments.
- Review the terms regarding royalty rates, which are mentioned as part of the license but not quantified in this filing.