Medgenics has signed a preclinical development and option agreement with the international biopharmaceutical company worth up to $7m in payments that included funding for preclinical development of Medgenics’ Biopump protein technology to produce and deliver clotting protein Factor VIII for the sustained treatment of hemophilia in 23 October 2009.
Under the extended agreement, Medgenics will assume the funding responsibilities during such period and the pharmaceutical company has the exclusive option to negotiate a definitive agreement regarding a transaction related to the Factor VIII Biopump technology taking into account the relative contributions of the parties.
Such option is exercisable anytime prior to the end of such 6-month period upon payment to Medgenics of a $2,500,000 option fee.