Officials with Medical Developments International Limited announced they have agreed to a term sheet and will now move to contract with a pharmaceutical company having expertise in pain management products.
The agreement would enable Medical Developments to distribute Penthrox within the 28 member states of the European Union, except for the United Kingdom, Ireland, and Hungary where MDI has existing distribution agreements, and within other European countries.
The potential transaction calls for upfront and milestone payments of $54.5 million including:
$7.0 million upon signing.
$3.0 million upon receiving Marketing Authorisation approvals in France (expected very shortly) and Belgium (already received).
$7.0 million upon receiving reimbursement in Germany, Italy, Spain and France.
The remaining $37.5 million relates to sales milestones potentially earned more than the term of the deal.
Additionally, MVP will receive a gross margin on product sold to partner and royalties based on net sales.
According to materials on Medical Development International's website, this medication is indicated for the relief of pain by "self administration in conscious hemodynamically stable patients with trauma and associated pain."
It is also indicated "for the relief of pain in monitored conscious patients who require analgesia for surgical procedures such as the change of dressings."
Medical Developments International, the company behind Australia’s “green whistle” pain relief inhaler, is near to closing a $US54.5 million ($70 million) licensing deal in Europe. The company says it has signed a term sheet and will now move to contract with an as-yet unnamed “significant pharmaceutical” group with expertise in pain management products to distribute Penthrox, the Melbourne-made emergency pain killer.