Under this agreement, IGI grants DermWorx the exclusive rights to market and sell the product in North, Central and South America, the UK and Japan. To maintain exclusivity, DermWorx will guarantee IGI annual minimum royalty payments.
IGI will receive a product development fee upon signing this new agreement. IGI will also receive manufacturing revenues starting first quarter and royalty income starting in the fourth quarter of fiscal year 2008. IGI has also granted DermWorx a right of first refusal, effective until June 30, 2008, for the development of a line extension of this therapeutic moisturizing product using the Novasome encapsulation technology.
Rajiv Mathur, president and CEO of IGI, said: “With all our partners, we continue to commercialize additional Novasome-based OTC drug products providing value added market differentiation.”