Acasti Pharma provided shareholders with a clarification on its proposed partnership with an undisclosed Chinese pharmaceutical company.
[S]ubject to further negotiation and execution of a definitive agreement, the Chinese pharmaceutical company would be granted an exclusive license to commercialize CaPre in certain Asian countries, including China.
The term sheet contemplates that the term of the license, including the period during which milestone payments, if any, could be achieved, would be until the later of (i) the fifth anniversary of the last-to-expire patent licensed or (ii) 2035, and the license would be automatically renewable for one renewal term of ten years.
The term sheet is preliminary and non-binding at this stage and the license, upfront payment, possible milestone payments, and royalties contemplated by it will only become operative if definitive documents are executed. It is possible that no definitive agreement will be reached or, if a definitive agreement is reached, that its terms or conditions may differ from those described above.