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news.IntelGenx has entered into a memorandum of agreement with Pillar5 Pharma. Pursuant to the agreement, IntelGenx undertakes to use its best efforts to ensure that distributors of IntelGenx's oral solid dose pharmaceutical products developed for commercial production be directed to Pillar5 for purposes of negotiating a manufacturing agreement requiring Pillar5 to manufacture those products.
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As consideration for this undertaking, Pillar5 has issued to IntelGenx 114 voting common shares of Pillar5, representing 10% of the issued and outstanding shares of Pillar5. The shares will be held in escrow and are forfeitable by IntelGenx until Pillar5 achieves certain revenue targets and are subject to restrictions on transfer pursuant to the Agreement.
IntelGenx has a right of first refusal in the event of bona fide sale to a third party of all of the shares or substantially all of the assets of Pillar5. Pursuant to the Agreement, IntelGenx also has the right to designate a nominee to serve on the board of directors of Pillar5 and Pillar5 has the right to designate a nominee to serve on the board of directors of IntelGenx Technologies.
Horst Zerbe, president and CEO of IntelGenx, said: “We previously announced the manufacturing site change of our CPI-300 product to Pillar5, so the negotiation and completion of this Agreement was a natural progression for us.
“Recent experiences have re-emphasised the importance of securing strong and reliable manufacturing partnerships for our products. The Pillar5 facility has a long-standing record of manufacturing quality product for the pharmaceutical industry and is equipped with state-of-the-art equipment, infrastructure and processes. We are therefore very excited to be partnering with Pillar5, and proud of our ownership position in the facility.”