Derma Sciences, a specialty medical device/pharma company focused on advanced wound care, has finalized a definitive set of agreements with Comvita New Zealand (Comvita) of Paengaroa, New Zealand, giving it perpetual and exclusive worldwide licensing rights for 'Medihoney' wound care and skin products covering distribution and sales to all markets.
In addition to a license agreement and restraint agreement, Derma Sciences and Comvita have also entered into several other related agreements, including a collaborative research and development agreement, a Medical Honey supply agreement and a manufacturing agreement pursuant to which Derma Sciences will manufacture Medihoney brand OTC products for Comvita.
As per the license agreement and related restraint agreement, Derma Sciences will pay to Comvita $2.25m, issue Comvita 400,000 shares of its common stock, issue Comvita 133,333 warrants to purchase its common stock at an exercise price of $5.50 per share and issue to Comvita 100,000 warrants to purchase its common stock at a price of $6.25 per share.
In addition, the license agreement calls for royalty payments on all sales and additional payments to Comvita if certain Medihoney net sales milestones are achieved over the course of the License. The license rights may be terminated or rendered non-exclusive by Comvita if Derma Sciences fails to meet certain minimum royalty requirements.
Edward Quilty, chairman and CEO of Derma Sciences, said: “Ever since our Medihoney product launch in 2007 into North and South America, Derma Sciences has experienced great success with this product. With this license agreement now finalized, we can focus on expanding our global strategy and growing the Medihoney brand worldwide.”
Brett Hewlett, CEO of Comvita, said: “Comvita and Derma Sciences have worked long and hard to get this agreement in place, and we are happy to have overcome the obstacles created by the global economic downturn. Derma is the best possible partner for us because of its knowledge of the advanced wound care markets, and sophisticated use of Medihoney in dressings.”