Quigley signs license agreement for scar drug

The Quigley Corporation, a manufacturer of homeopathic and health products, has signed a license with assignment of ownership agreement for its patented formulation QR-340 developed by its wholly owned subsidiary, Quigley Pharma, with Levlad/Natures Gate, a manufacturer and marketer of personal care products based on botanicals.

Quigley said that the compound has been clinically tested and shown to improve the appearance of scars in a comparative study.

The general terms of the agreement allow the assignee to further refine, develop and commercialize the product with exclusivity and eventual full ownership of the patent within five years, beginning January 2009. The agreement is based on required royalty payments totaling $1.1m to The Quigley Corporation over the time period.

Under the terms of the agreement, if the minimum payments and terms are not met within the five-year period, Quigley retains full rights and ownership of the property. However, Levlad can continue to pay per unit royalties beyond five years for a non-exclusive license.

Richard Rosenbloom, executive vice president and COO of Quigley Pharma, said: It is gratifying to see one of our patented and positively tested formulations come closer to benefiting the consumer and providing a return on our investment.