MISSISSAUGA, ON, April 25, 2017 /CNW/ - Crescita Therapeutics Inc. (TSX:CTX) (Crescita or the Company), a commercial dermatology company with a portfolio of non-prescription skincare products and prescription drugs, today announced it has entered into a development and commercialization license agreement (the Agreement) with Taro Pharmaceuticals Inc. (Taro), the Canadian subsidiary of Taro Pharmaceutical Industries Ltd. (NYSE:TARO). Under the terms of the Agreement, Crescita has granted Taro an exclusive license (Taro License) to the rights to sell and distribute Pliaglis in the U.S. market and for a second-generation enhanced version with patent pending (the Enhanced Formulation). In consideration of the rights granted under the Agreement, Taro will make the following payments to Crescita:
| (i) |
an upfront, non-dilutive payment of US$2.0 million; |
| (ii) |
up to US$5.75 million in non-dilutive development and sales milestone payments; and |
| (iii) |
tiered royalties on net sales of products licensed under the Agreement. |
In addition, Crescita and Taro have entered into a fee-for-service development agreement, whereby, the Company will provide services related to further development of Pliaglis and the Enhanced Formulation. Crescita will receive these fees based on services performed.
Crescita retains all rights to Pliaglis in Canada and Mexico and will look to maximize the value of Pliaglis in those markets for the benefit of Crescita stakeholders.
"We are delighted to have Taro as our new licensing partner for Pliaglis in the U.S.," said Dan Chicoine, Crescita's Executive Chairman & Interim CEO. "Taro is a leading supplier of topical dermatological products in the U.S. We look forward to working with Taro to not only reintroduce Pliaglis to the U.S. market, but to also obtain FDA approval for the patent pending Enhanced Formulation."
About Pliaglis
Pliaglis, a lidocaine and tetracaine (7%/7%) formulation, is a U.S. Food and Drug Administration (FDA) approved topical local anesthetic cream that provides safe and effective local dermal anaesthesia on intact skin prior to superficial dermatological procedures, such as dermal filler injection, pulsed dye laser therapy, facial laser resurfacing and laser-assisted tattoo removal. This product contains lidocaine and tetracaine and utilizes the proprietary phase-changing topical cream "Peel" technology. The "Peel" technology consists of a drug containing cream which, once applied to a patient's skin, dries to form a pliable layer that releases drug into the skin. Following the application period, Pliaglis forms a pliable layer that is removed from the skin allowing the dermatological procedure to be performed with minimal to no pain.
About Taro Pharmaceutical Industries Ltd.
Taro (NYSE:TARO) is a multinational, science-based pharmaceutical company, dedicated to meeting the needs of its customers through the discovery, development, manufacturing and marketing of the highest quality healthcare products. For further information on Taro, please visit the Company's website at www.taro.com.
About Crescita Therapeutics Inc.
Crescita (TSX:CTX) is a publicly traded, Canadian commercial dermatology company with a portfolio of non-prescription skincare products and prescription drug products for the treatment and care of skin conditions and diseases and their symptoms. Crescita owns multiple proprietary drug delivery platforms that support the development of patented formulations that can facilitate the delivery of active drugs into or through the skin. Crescita's board of directors and management team have demonstrated success in building Crescita's predecessor company, Nuvo Research Inc., including developing multiple drugs that are now approved and commercialized and negotiating multiple licensing transactions. For additional information, please visit www.crescitatherapeutics.com.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Examples of forward-looking statements include, among others, statements Crescita makes regarding Taro making milestone and tiered royalty payments by the Company, the provision of services by the Company to Taro related to further development of Pliaglis and the Enhanced Formulation, Crescita's ability to maximize the value of Pliaglis in Canada and Mexico, and the FDA's approval for the patent pending Enhanced Formulation.
Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the future of its business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control. Crescita's actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, readers should not rely on any of these forward-looking statements. Important factors that could cause Crescita's actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the risk factors included in Crescita's most recent Annual Information Form dated March 29, 2017 under the heading "Risks Factors", and as described from time to time in the reports and disclosure documents filed by Crescita with Canadian securities regulatory agencies and commissions. These and other factors should be considered carefully and readers should not place undue reliance on Crescita's forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levels of activity or achievements and none of Crescita or any other person assumes responsibility for the accuracy and completeness of these forward-looking statements.
Any forward-looking statement made by the Company in this press release is based only on information currently available to it and speaks only as of the date on which it is made. Except as required by applicable securities laws, Crescita undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
SOURCE Crescita Therapeutics Inc.
Investor Relations, Email: [email protected]
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