Crescita Therapeutics signed an agreement with the Canadian subsidiary of Taro Pharmaceutical Industries for the rights to sell Pliaglis in the US.
Crescita Therapeutics (TSX:CTX) signed an agreement with the Canadian subsidiary of Taro Pharmaceutical Industries (NYSE:TARO) for the rights to sell Pliaglis in the US.
As quoted in the press release:
Under the terms of the Agreement, Crescita has granted Taro an exclusive license (Taro License) to the rights to sell and distribute Pliaglis in the U.S. market and for a second-generation enhanced version with patent pending (the Enhanced Formulation). In consideration of the rights granted under the Agreement, Taro will make the following payments to Crescita:
- an upfront, non-dilutive payment of US$2.0 million
- (ii) up to US$5.75 million in non-dilutive development and sales milestone payments; and
- (iii) tiered royalties on net sales of products licensed under the Agreement.
In addition, Crescita and Taro have entered into a fee-for-service development agreement, whereby, the Company will provide services related to further development of Pliaglis and the Enhanced Formulation. Crescita will receive these fees based on services performed.
Crescita retains all rights to Pliaglis in Canada and Mexico and will look to maximize the value of Pliaglis in those markets for the benefit of Crescita stakeholders.
“We are delighted to have Taro as our new licensing partner for Pliaglis in the U.S.,” said Dan Chicoine, Crescita’s Executive Chairman & Interim CEO. “Taro is a leading supplier of topical dermatological products in the U.S. We look forward to working with Taro to not only reintroduce Pliaglis to the U.S. market, but to also obtain FDA approval for the patent pending Enhanced Formulation.”