Medexus and medac Conclude Negotiations to Amend US Treosulfan Agreement, Setting Regulatory Milestone Amounts and Payment Schedule
Medexus Pharmaceuticals has amended its US treosulfan licensing agreement with medac, establishing new regulatory milestone payments tied to FDA approval. The payment structure varies based on product labeling: US$15 million for basic approval, US$20 million for non-inferiority, or US$45 million for clinical superiority. Payments will be made in three installments: one-sixth by June 2025, one-third by October 2025, and the remaining 50% by January 2026. The company expects FDA approval by January 30, 2025, projecting potential annual US revenue exceeding US$100 million within five years post-launch.
Medexus Pharmaceuticals ha modificato il suo accordo di licenza per il treosulfan negli Stati Uniti con medac, stabilendo nuovi pagamenti legati a traguardi normativi in relazione all'approvazione da parte della FDA. La struttura dei pagamenti varia in base all'etichettatura del prodotto: 15 milioni di dollari USA per l'approvazione base, 20 milioni di dollari USA per la non inferiorità, o 45 milioni di dollari USA per la superiorità clinica. I pagamenti saranno effettuati in tre rate: un sesto entro giugno 2025, un terzo entro ottobre 2025 e il restante 50% entro gennaio 2026. L'azienda prevede l'approvazione della FDA entro il 30 gennaio 2025, con l'aspettativa di ricavi annuali potenziali negli Stati Uniti superiori a 100 milioni di dollari USA entro cinque anni dal lancio.
Medexus Pharmaceuticals ha modificado su acuerdo de licencia de treosulfán en EE. UU. con medac, estableciendo nuevos pagos por hitos regulatorios vinculados a la aprobación de la FDA. La estructura de pagos varía según el etiquetado del producto: 15 millones de dólares EE. UU. por la aprobación básica, 20 millones de dólares EE. UU. por no inferioridad, o 45 millones de dólares EE. UU. por superioridad clínica. Los pagos se realizarán en tres cuotas: un sexto para junio de 2025, un tercio para octubre de 2025 y el 50% restante para enero de 2026. La compañía espera la aprobación de la FDA para el 30 de enero de 2025, proyectando ingresos anuales potenciales en EE. UU. que superen los 100 millones de dólares EE. UU. en los cinco años posteriores al lanzamiento.
Medexus Pharmaceuticals는 medac과의 미국 treosulfan 라이센스 계약을 수정하여 FDA 승인과 관련된 새로운 규제 이정표 지급 조건을 설정했습니다. 지급 구조는 제품 라벨링에 따라 달라집니다: 기본 승인 시 1500만 달러, 비열등성 승인 시 2000만 달러, 임상 우수성 승인 시 4500만 달러입니다. 지급은 세 번에 나누어 이루어지며: 2025년 6월까지 1/6, 2025년 10월까지 1/3, 나머지 50%는 2026년 1월까지입니다. 회사는 2025년 1월 30일까지 FDA 승인을 예상하고 있으며, 출시 후 5년 이내에 미국에서 연간 수익이 1억 달러를 초과할 것으로 예상하고 있습니다.
Medexus Pharmaceuticals a modifié son accord de licence pour le treosulfán aux États-Unis avec medac, établissant de nouveaux paiements liés à des jalons réglementaires en fonction de l'approbation par la FDA. La structure de paiement varie selon l'étiquetage du produit : 15 millions de dollars US pour l'approbation de base, 20 millions de dollars US pour la non-infériorité ou 45 millions de dollars US pour la supériorité clinique. Les paiements seront effectués en trois versements : un sixième d'ici juin 2025, un tiers d'ici octobre 2025 et les 50 % restants d'ici janvier 2026. L'entreprise s'attend à une approbation de la FDA d'ici le 30 janvier 2025, prévoyant des revenus annuels potentiels aux États-Unis dépassant 100 millions de dollars US dans les cinq ans suivant le lancement.
Medexus Pharmaceuticals hat seine Lizenzvereinbarung für Treosulfan in den USA mit medac geändert und neue regulatorische Meilensteinzahlungen im Zusammenhang mit der FDA-Zulassung festgelegt. Die Zahlungsstruktur variiert je nach Produktkennzeichnung: 15 Millionen USD für die Grundgenehmigung, 20 Millionen USD für die Nichtunterlegenheit oder 45 Millionen USD für klinische Überlegenheit. Die Zahlungen erfolgen in drei Raten: ein Sechstel bis Juni 2025, ein Drittel bis Oktober 2025 und die verbleibenden 50% bis Januar 2026. Das Unternehmen erwartet die FDA-Genehmigung bis zum 30. Januar 2025 und prognostiziert potenzielle jährliche Einnahmen in den USA von über 100 Millionen USD innerhalb von fünf Jahren nach Markteinführung.
- Flexible payment structure allowing deferral of 83% of milestone payments until January 2026
- Projected annual US revenue potential exceeding US$100 million within 5 years post-launch
- Multiple financing options available for milestone payments including cash, operations, or debt
- Significant milestone payments required upon FDA approval (US$15-45 million)
- Additional US$2.5 million repayment of medac credit required upon approval
- Supply price increase for Rasuvo product if payment deferral is exercised
- 9% interest rate on deferred milestone payments
Toronto, Ontario and Chicago, Illinois--(Newsfile Corp. - December 2, 2024) - Medexus Pharmaceuticals (TSX: MDP) (OTCQX: MEDXF) is pleased to announce that the company recently entered into a fourth amendment to its February 2021 exclusive license agreement with medac relating to commercialization of treosulfan in the United States.
Among other things, the fourth amendment adjusts the unpaid regulatory milestone payments under the US treosulfan agreement. Upon an FDA approval of treosulfan, Medexus would repay a US
- one-sixth of the total amount by June 30, 2025,
- one-third of the total amount by October 1, 2025, and
- the remaining amount (
50% of the total) by January 1, 2026.
For the lowest regulatory milestone amount, this installment schedule would result in payments of US
Medexus would be entitled to temporarily defer a portion of the first installment (to the extent, if any, exceeding US
"We are pleased to have achieved clarity on the remaining contractual milestones under our agreement and arrived at terms that appropriately reflect the value we see in this product," commented Ken d'Entremont, Chief Executive Officer of Medexus. "We remain optimistic about the prospect of FDA approval no later than January 30, 2025, and we view the lower milestone amounts as the more likely outcome based on the expected labeling of the product. If approved, we continue to believe annual product-level revenue in the United States has the potential to exceed US
"Achieving the favorable payment terms of this amendment further strengthens our financial position" added Brendon Buschman, Chief Financial Officer of Medexus. "This structure will allow us to allocate existing capital towards the launch of treosulfan in the United States, and provides us the flexibility to defer
The fourth amendment also extends the agreed outside date for FDA approval to reflect the current status of the FDA regulatory review process. In addition, in connection with the fourth amendment, Medexus agreed to end a concession previously granted by medac in respect of the supply price for Rasuvo and, in the event Medexus exercises the temporary deferral right discussed above, to a further marginal increase in the per-unit supply price for that product.
Additional information about the terms of the license agreement, including copies of the relevant documents, is included in the company's filings on SEDAR+ at www.sedarplus.ca. The summary in this news release is qualified by reference to the terms of each such document as applicable.
About Medexus
Medexus is a leading specialty pharmaceutical company with a strong North American commercial platform and a growing portfolio of innovative and rare disease treatment solutions. Medexus's current focus is on the therapeutic areas of oncology, hematology, rheumatology, auto-immune diseases, allergy, and dermatology. For more information about Medexus and its product portfolio, please see the company's corporate website at www.medexus.com and its filings on SEDAR+ at www.sedarplus.ca.
Contacts
Ken d'Entremont | CEO, Medexus Pharmaceuticals
Tel: 905-676-0003 | Email: ken.dentremont@medexus.com
Brendon Buschman | CFO, Medexus Pharmaceuticals
Tel: 416-577-6216 | Email: brendon.buschman@medexus.com
Victoria Rutherford | Adelaide Capital
Tel: 480-625-5772 | Email: victoria@adcap.ca
Forward-looking statements
Certain statements in this news release contain forward-looking information within the meaning of applicable securities laws, also known and/or referred to as "forward-looking information" or "forward-looking statements". The words "anticipates", "believes", "expects", "will", "plans", "potential", "prospects", and similar words, phrases, or expressions are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words, phrases, or expressions. Specific forward-looking statements in this news release include, but are not limited to, information contained in statements regarding any of the following: Medexus's expectations and plans regarding future growth, revenues, and expenses (including in respect of the commercialization of treosulfan and the product-level revenue to be generated from its commercialization in the United States); the potential benefits of treosulfan; the occurrence, timing, and expected outcome of the FDA review process for treosulfan (including the terms of the FDA's approval, if any, and in particular relating to expectations regarding the amount of the regulatory milestone payment that would become payable depending on those terms); Medexus's capital allocation strategy, including expectations regarding availability of cash on hand and funds from operations, cash flow generation, and capital allocation and anticipated cash needs, capital requirements, and needs for and ability to secure additional financing (in particular any milestone payments that may become due under the company's US treosulfan agreement); and, if approved by the FDA, expectations regarding the product's prospects and performance, its potential adoption and use, and the potential competitive position of the product and anticipated trends and potential challenges in the market in which the product is expected to compete. These statements and information are based on Medexus's current expectations and assumptions, including factors or assumptions that were applied in drawing a conclusion or making a forecast or projection, and including assumptions based on regulatory guidelines, historical trends, current conditions, and expected future developments. Since forward-looking statements relate to future events and conditions, by their very nature they require making assumptions and involve inherent risks and uncertainties. Medexus cautions that, although the assumptions are believed to be reasonable in the circumstances, these risks and uncertainties mean that actual results could differ, and could differ materially, from the expectations contemplated by the forward-looking statements. Material risk factors include, but are not limited to, those set out in Medexus's materials filed with the Canadian securities regulatory authorities from time to time, including Medexus's most recent annual information form and management's discussion and analysis. Accordingly, undue reliance should not be placed on these forward-looking statements, which are made only as of the date of this news release. Other than as specifically required by law, Medexus undertakes no obligation to update any forward-looking statements to reflect new information, subsequent or otherwise.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/232026
FAQ
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