QLT entered into an agreement with Mati in December and closed the deal in April.
Vancouver, British Columbia-QLT Inc. has completed the sale of the Company's punctal plug drug delivery system (PPDS) technology to Mati Therapeutics Inc., a development company founded by Robert Butchofsky, QLT's former president and chief executive officer.
In December 2012, QLT entered into an exclusive agreement with Mati under which QLT granted Mati a 90-day option to acquire assets related to QLT's PPDS technology in exchange for $500,000. On April 3, following Mati's exercise of the option, QLT and Mati entered into an asset purchase agreement and completed the sale of PPDS technology to Mati.
Under the terms of the asset purchase agreement, QLT received an additional payment of $750,000 at closing and is eligible to receive potential payments upon the satisfaction of certain product development and commercialization milestones that could reach $19.5 million-or exceed that amount if more than two products are commercialized-a low single-digit royalty on worldwide net sales of all products using or developed from the PPDS Technology, and a fee on payments received by Mati in respect of the PPDS Technology other than net sales.