Nanobiotix (NASDAQ: NBTX) and PharmaEngine Inc have agreed to terminate the license and collaboration agreement announced in August 2012.
- The agreement provided PharmaEngine exclusive rights to further the development of NBTXR3 in the Asia-Pacific region.
- Nanobiotix filed a prospectus last year notifying PharmaEngine of a material breach of the terms of the agreement.
- PharmaEngine denied any breach and asserted certain material breaches of that agreement by Nanobiotix.
- Pursuant to this termination, Nanobiotix will retain all rights to the development and commercialization of NBTXR3 in the Asia-Pacific region.
- PharmaEngine will receive payments not exceeding $5 million in total.
- In the future, PharmaEngine will be entitled to receive a payment of $7.5 million upon a second regulatory approval of NBTXR3.
- If NBTX announces a new collaboration for the Asia-Pacific region within six months of the agreement’s effective date, PharmaEngine will be entitled to an immediate $2.5 million payment.
- PharmaEngine will also receive low-single-digit sales-based royalty for ten years.
- NBTXR3 is a radio enhancer composed of sterile, functionalized, crystalline hafnium oxide nanoparticles.
- It is designed to increase the radiotherapy energy deposit inside tumor cells to increase tumor cell death compared to radiotherapy alone and without adding toxicity to adjacent healthy tissues.
- Price Action: NBTX shares closed 5.9% lower at $15.51 on Thursday.
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