PROMETIC REACQUIRES PLASMINOGEN RIGHTS FROM HEMATECH
- Regains 100% ownership of profits from future sales of plasminogen for congenital deficiency
- Hematech continues to hold Taiwanese rights to PPPS™ as CMO supplier to ProMetic
LAVAL, QUEBEC, CANADA, – January 5, 2017 –
'ProMetic Life Sciences Inc. (TSX: PLI) (OTCQX: PFSCF), (“ProMetic” or the “Corporation”) announced today that it has amended its licensing agreement originally entered into with Hematech BioTherapeutics Inc., (“Hematech”) in May 2012 (the “License Agreement”). ProMetic has reacquired the rights initially granted to Hematech in the License Agreement, to a 50% share of the worldwide profits related to plasminogen congenital deficiency sales (the “Rights”).
The parties had originally entered into two separate agreements: the Licensing Agreement and a further agreement which provided Hematech with the manufacturing rights to supply ProMetic with additional plasma-derived biopharmaceuticals on a contract manufacturing basis (the “CMO relationship”). Since 2012, ProMetic has secured the required cGMP manufacturing capacity to allow for the achievement of its ambitious corporate goals. As a consequence of the positive steps taken by ProMetic to secure such capacity, the pace at which the Taiwanese manufacturing capacity needs to be brought on line has become less critical. However, this CMO relationship between ProMetic and Hematech is maintained for future manufacturing capacity expansion and the parties will continue to work together on this project.
“The License Agreement needed readjustment as the timing of investments and milestone payments related to the plasminogen development program and those relating to the CMO relationship became unreasonably out of sync”, stated Mr. Pierre Laurin, President and Chief Executive Officer of ProMetic. “It became apparent to both parties that in order to settle these discrepancies and re-align the relationship with a focus on the CMO relationship, it would be most appropriate for ProMetic to regain full ownership of the future profits from plasminogen congenital deficiency sales”. Mr. Laurin added, “We are very pleased to have reacquired these rights. Given our strong focus on plasminogen, we believe this will be very advantageous to our shareholders in the short and long-term”.
Bruce Pritchard, ProMetic’s Chief Operating Officer, commented: “This updated agreement with Hematech will also help both parties adjust for the optimal timing of any external additional CMO capacity required by ProMetic when such capacity can be linked to the expansion of plasminogen clinical indications and regulatory approval of additional plasma-derived therapeutic products".
Consideration for acquiring the Rights included the issuance of 1,683,040 shares of ProMetic to Hematech, the payment of a mid-single digit royalty by ProMetic to Hematech on Prometic’s sales of plasminogen for congenital deficiency, adjustments to mutual obligations of the parties as well as other non-cash considerations to the License Agreement.'
Jim |
