Medexus Completes Agreement to Return US Commercialization Rights for Gleolan to NX Development Corp.
Rhea-AI Summary
Medexus Pharmaceuticals (OTCQX: MEDXF) has finalized an agreement to return the US commercialization rights for Gleolan® to NX Development Corp. (NXDC). The transition will be completed by March 31, 2025.
Under the termination agreement, Medexus will receive a per-unit compensation on Gleolan® units sold by NXDC through June 30, 2025. This amount is comparable to the product's historical per-unit contribution to Medexus and will reduce the company's royalty payment to NXDC for fiscal year 2025, due in June 2025.
Positive
- Agreement includes compensation comparable to historical per-unit contribution through June 30, 2025
- Reduction in royalty payment obligations to NXDC for fiscal year 2025
Negative
- Loss of US commercialization rights for Gleolan product
- Reduction in future revenue stream after June 30, 2025
News Market Reaction
On the day this news was published, MEDXF declined 1.12%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Toronto, Ontario and Chicago, Illinois--(Newsfile Corp. - March 14, 2025) - Medexus Pharmaceuticals (TSX: MDP) (OTCQX: MEDXF) recently completed an agreement with NX Development Corp., the licensor of Medexus's rights to Gleolan® in the United States, to terminate the license, supply, and distribution agreement between the parties and return responsibility for Gleolan® in the United States to NXDC as of a date no later than March 31, 2025. Under the terms of the termination agreement, Medexus will receive an agreed per-unit amount on units of Gleolan® sold by NXDC through June 30, 2025 that approximates the product's past per-unit contribution to Medexus during the term of the now-terminated agreement, which will reduce Medexus's royalty payment to NXDC for fiscal year 2025, due in June 2025.
"We are pleased to have successfully arrived at a mutually acceptable arrangement regarding transition of responsibility for Gleolan® in the United States," said Ken d'Entremont, Medexus's Chief Executive Officer. "We view this outcome as fair to Medexus and its stakeholders without compromising future availability of Gleolan® for the eligible patients who need it. We wish the NXDC team all the best in their future endeavors with this product."
Additional information about the terms of the agreements discussed in this news release, including copies of the relevant documents, is or will be 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 hematology-oncology and allergy, dermatology, and rheumatology. 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", "budget", "potential", "targets", "could", "estimates", "expects", "forecasts", "goals", "intends", "may", "might", "objective", "outlook", "plans", "projects", "schedule", "should", "will", "would", "prospects", and "vision", or 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 the timing and expected outcome of Medexus's negotiations with the licensor of Medexus's commercialization rights to Gleolan®, including the extent to which the arrangements discussed in this news release will constitute a full and final resolution of the disputes and disagreements between the parties, and any related consequences for the company and the product, including future availability of Gleolan® in the United States and the extent to which the aggregate amount that Medexus receives from NXDC under the termination agreement will approximate the amount Medexus would have retained under the terms of the now-terminated agreement (which will largely depend on NXDC's ability to maintain commercial availability of the product following the termination date, which may experience interruptions, and, thereafter, NXDC's success commercializing the product, through June 30, 2025), and otherwise regarding the business relationship of the parties in the United States and Canada, including any further dispute resolution processes or other proceedings that a party could elect to pursue in future. The forward-looking statements and information included in this news release 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/244573
FAQ
When will Medexus (MEDXF) complete the transfer of Gleolan rights to NXDC?
How long will Medexus (MEDXF) receive compensation for Gleolan sales after the transfer?
What financial impact will the Gleolan rights transfer have on Medexus (MEDXF)?
Will the Gleolan transfer affect patient access to the medication?
