QLT completes sale of punctal plug technology to Mati Therapeutics
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.
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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.
