IntelGenx Licenses an Anti-Psychotic VersaFilm Product
IntelGenx Corp. has executed a binding term-sheet with RedHill Biopharma Ltd. to co-develop and license an anti-psychotic oral thin film product based upon the company's proprietary VersaFilm technology. The term-sheet sets forth the main criteria to be incorporated into a definitive development and license agreement, subject to due diligence, under which RedHill would obtain exclusive worldwide rights to market and sell IntelGenx' rapidly dissolving anti-psychotic oral film product. In exchange, IntelGenx would receive upfront, milestone, and external development fees totalling up to US$2.3 million from RedHill.
Furthermore, upon commercialization of the product, IntelGenx would receive up to 50% of all proceeds including, but not limited to, all sales milestones and income from the product world-wide. IntelGenx and RedHill have entered into a ninety-day exclusivity period, during which IntelGenx is prohibited from engaging in negotiations related to the product with any other party.
The term-sheet also provides for a break-up fee in the event that IntelGenx or RedHill is unable to execute the licensing agreement, under certain circumstances, after the satisfactory completion of due diligence.
'We are excited to have entered into another partnership with RedHill for a VersaFilm product,' said Dr. Horst G. Zerbe, President and Chief Executive Officer of IntelGenx. 'VersaFilm is at the forefront of new technology aimed at delivering medicine in a manner that could offer some unique advantages over conventional oral delivery, especially in patients with anti-psychotic behavioural symptoms where patient compliance is an issue.'
In February 2011, IntelGenx announced the results of a clinical pilot study that suggests IntelGenx has successfully developed a product that is bioequivalent to a leading branded anti-psychotic therapy. The product has been developed using IntelGenx' proprietary immediate release VersaFilm drug delivery technology, which provides a patent-protected method of formulating products in a more convenient and discrete dosage formulation.