Cambium Bio (ASX:CMB) executed a memorandum of understanding with Taiwan-based Locus Cell for the contract manufacturing of the active biologic ingredient for Elate Ocular, its lead dry eye disease therapy candidate, according to a Tuesday Australian bourse filing.

Locus Cell will manufacture the active biologic ingredient, the drug substance component of Elate Ocular, based on pooled fibrinogen-depleted human platelet lysates.

Zheng Yang Biomedical Technology, as Cambium's technology partner, will provide manufacturing protocols and conduct technical transfer to Locus Cell. Zheng Yang holds around 28.1% stake in Cambium.

The manufacturing rights cover worldwide markets except Europe and the Middle East. Supply will be exclusively to Cambium or its designees under future definitive supply and quality deals. The agreement has a two-year initial term with mutual extension options.