Neptune structured part of its pharmaceutical operations into its subsidiary Acasti Pharma to carry out the research, development and commercialization of active pharmaceutical ingredients (APIs) for chronic cardiovascular disease.
According to its business strategy, Acasti Pharma will pursue negotiations with the objective to enter into strategic pharmaceutical alliances.
Neptune has granted to Acasti Pharma a license to rights of its intellectual property portfolio related to cardiovascular applications. The transfer of this license allows Acasti Pharma to exploit intellectual property rights in order to develop novel APIs into commercial products for three pharmaceutical markets, namely the over-the-counter, the medical food and the prescription drug market, said Neptune.
The license was transferred to the pharmaceutical subsidiary in the exchange of 25 million category C shares, five million multi-voting category B shares, and eight million warrants expiring on July 31, 2010 for an aggregate value of $9 million. Acasti Pharma will pay royalties to Neptune from licensed product sales in the cardiovascular field with a minimum annual royalty payment for each of the three pharmaceutical markets.
Neptune ascribed a fraction of its warrants held in its subsidiary to employees, officers and administrators. Acasti Pharma is responsible for carrying out the research and development of the APIs, as well as required regulatory submissions and approvals and intellectual property filings with regards to cardiovascular applications. Acasti Pharma is preparing an investigational new drug application with the FDA and a clinical trial application with Health Canada.