MM-II is an intra-articular biolubricant injection which is being developed to provide symptomatic relief of mild-to- moderate osteoarthritis pain, it said.

"Sun Pharma will fund further development of Moebius Medical's lead product, MM-II, and undertake its global commercialisation," it added.

Moebius Medical will conduct requisite pre-clinical studies and will assume responsibility for product development and manufacturing through the end of Phase-II studies, as per the pact, the statement said.

Sun Pharma will assume responsibility for further clinical studies, regulatory submissions and product commercialisation, it added.

"Moebius Medical will receive an upfront payment, development-based and sales-based milestone payments, and tiered royalties on sales from Sun Pharma," the statement said without mentioning any details about payments.

Sun Pharma Global Head of Business Development Kirti Ganorkar said the agreement is "a part of our effort to build a branded product pipeline and enrich our global portfolio for pain products".

The company is encouraged to further develop MM-II and hopes to bring a new innovative treatment to patients suffering from osteoarthritic pain, he added.

"We are proud and excited that Sun Pharma...Has chosen Moebius Medical as a partner for building its specialty pipeline, and we look forward to close cooperation as we continue MM-II's development," Moebius Medical CEO Moshe Weinstein said.

Sun Pharma's investment confirms the potential of Moebius Medical's innovative approach to bring effective pain relief to osteoarthritis patients, he added.

To date, Moebius Medical has completed a first-in-man clinical study at Hadassah Medical Center, the statement said.