Surgical and wound care company Advanced Medical Solutions Group plc (AMS) and regenerative medicine firm Organogenesis Inc. said they entered an out-licensing agreement on a US patent for a collagen-based wound dressing containing Polyhexamethylene Biguanide (PHMB).
Under terms of the agreement, Organogenesis has been granted an exclusive license in the United States to the patent.
“In exchange for this, AMS will receive a minimum payment of $2.5 million, which will be recognized in 2017, and a minimum royalty revenue of $1 million for each of the financial years ending 31 December 2018 and 2019, as part of an ongoing royalty that will be payable to AMS on the net sales of the licensed product for the life of the patent,” said Organogenesis.
The patent is due to expire in October 2026.
Advanced Medical Solutions CEO Chris Meredith said: “We are delighted to sign this agreement with Organogenesis, a commercial leader in regenerative medicine, focused in the areas of bio-active wound healing and soft tissue regeneration.
“The group’s ability to out-license our patent technologies is another endorsement of the quality of our innovation and we are confident that our partner will be able to use the AMS patent in order to help patients across the US.”
Organogenesis CEO Gary Gillheeney said: “We are very pleased to secure an exclusive license to this patent in the United States.
“This is an important agreement for Organogenesis that underscores our commitment to offering a comprehensive portfolio of products that addresses patient needs across the continuum of care.”