Cytogen will no longer pay Berlex a royalty on Quadramet sales in exchange for an upfront cash payment of $6 million and the issuance of 623,441 shares of Cytogen common stock at a price of $3.21 per share to Berlex.
In addition, Cytogen will also pay Berlex, sales-based milestone payments of $3.34 million and $5.01 million the first time net sales of Quadramet in the US territory reach $20 million and $30 million, respectively, in any 12-month period.
“By eliminating the previous Berlex royalty structure, this transaction will increase our gross margin for Quadramet and provide additional strategic and financial value for Cytogen and our stockholders,” said Michael Becker, president and CEO of Cytogen. “The agreement also underscores our conviction in the long-term prospects for this novel therapeutic agent, which is currently being evaluated for new indications in numerous clinical studies at prestigious institutions.”