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Aequus Signs Term Sheet with European Partner for a Preservative Free Therapeutic in Ophthalmology
Aequus Pharmaceuticals Inc. (TSX-V: AQS, OTCQB: AQSZF) (“Aequus” or the “Company”) is pleased to announce the signing of a term sheet for an exclusive license in Canada of an undisclosed preservative free ophthalmic therapeutic with a European partner. The preservative free therapeutic is a prescription product, currently approved in certain countries in Europe. Aequus has previously met with Health Canada to receive regulatory guidance regarding this therapeutic and expects to submit an application for regulatory approval in the second half of 2019 for this product, with minimal additional analytical data required to complete the data package.
With the successful execution of the broader license agreement, Aequus will have exclusive rights to the undisclosed preservative free therapeutic in Canada and will have first access to future products from the European partner’s glaucoma focused portfolio to be launched within the territory. Aequus expects the preservative free therapeutic to achieve peak annual sales between $4M-$6M, with an expectation of revenue in excess of $35M to the Company throughout the duration of the license.
“This agreement is a direct result of daily physician feedback from within the clinic,” said Ian Ball, CCO of Aequus. “Our Canadian commercial team detailing ophthalmologists, optometrists, and pharmacists is seeing a unanimous desire for medications that do not contain preservatives. With preservative free medications as first-line mainstays in other major markets, Aequus is excited about the prospect of providing Canadian patients access to this form of medication.”
“Backed by the strong growth we’re seeing in our current ophthalmology products, we continue to focus our efforts on expanding our ophthalmic portfolio by working with global partners,” said Doug Janzen, Chairman and CEO of Aequus. “This preservative free product will be our third product offering in the ophthalmology field and we are confident we can continue to grow our portfolio of revenue generating ophthalmic products over the near and mid-term. The deal construct is similar to our other co-promotion agreements with no upfront fees and a revenue split going forward.”
Under the proposed terms of the agreement the European partner will supply the product while Aequus will be responsible for marketing, distribution, and sales in Canada upon approval of the product by Health Canada. The two companies have agreed to a defined time period for executing the broader license agreement.