Under the agreement, Philip Morris will use Medicago’s technologies and VLPs for developing, manufacturing Medicago’s pandemic and seasonal influenza vaccines in china.
The terms of Philip Morris’ deal and license proceeds with Henan Billions include $4.5m.
Medicago said it is eligible to receive development milestone payments totalling $7.5m, as well as royalty payments on any future sales of pandemic and seasonal influenza vaccines by PMP in China.
In addition, Medicago has signed a license agreement with Philip Morris for a portfolio of plant-based protein development technologies.
Medicago chief executive officer Andy Sheldon said the company looks forward to work closely with Philip Morris to develop its pandemic and seasonal influenza vaccine candidates in the coming years.
"Strengthening our VLP platform and international expansion to emerging markets like China is a key component of our growth strategy, and this partnership represents an important milestone in achieving this strategy," Sheldon added.