Mithra Pharmaceuticals has entered into a license and supply agreement with Searchlight Pharma for the Canadian rights to Donesta.
Donesta is Mithra’s investigational next-generation medicine, which contains Estetrol, to treat menopause symptoms.
In July this year, Mithra and Searchlight signed a binding term sheet for a licensing agreement.
Searchlight agreed to exclusively handle the sales and marketing of Donesta in Canada under the agreement terms.
With the signing of the agreement, Mithra will receive an initial milestone payment of €1.5m.
Mithra anticipates receiving an extra €15.55m in milestone payments tied to regulatory and sales achievements, along with tiered double-digit royalties based on the total annual net sales in Canada.
Searchlight is responsible for receiving and maintaining the regulatory approvals needed to market and distribute Donesta in the country.
Mithra CEO David Horn Solomon said: “The finalisation of the Donesta licensing agreement for Canada is another important milestone as we continue to deliver on Mithra’s strategy and unlock the value in our business.”
Mithra and Searchlight maintain an ongoing collaboration for Nextstellis, the first combined oral contraceptive product based on Estetrol (E4) (ESTELLE project), and Haloette vaginal contraceptive ring in Canada (the MYRING project).
Nextstellis debuted in Canada in the third quarter of 2021, and Haloette was launched in the first quarter of 2022.
Searchlight president and CEO Mark Nawacki said: “We are pleased to continue our relationship with Mithra through the signing of the license agreement for Donesta.”