Under the terms of the agreement, Miraculins will issue to Mount Sinai Hospital (MSH) 310,000 common shares from treasury, subject to a standard four-month and one day resale restriction, as an upfront payment in consideration of the rights granted and MSH’s investment in the technology to date.
Miraculins will make additional commercial and developmental milestone payments as the technology is advanced to the marketplace, and commencing on the third anniversary of the signing of the agreement, an annual maintenance fee is payable. Beginning with first commercial sale, Miraculins will pay MSH an annual minimum and running royalty on sales.
Miraculins will be responsible for development and sales of the licensed product, however, the agreement provides for certain research activities to take place collaboratively. The parties have already begun executing the development plan with studies taking place involving a specific subset of markers in the portfolio. The company expects to be able to provide an update on the results of these studies and its further development plan by the end of fiscal 2008.
Christopher Moreau, president and CEO of Miraculins, said: “We are very proud to have formalized our partnership with Mount Sinai Hospital and Isabella Caniggia and to work together to develop a diagnostic test to help address the leading cause of maternal deaths worldwide.”