Jubilant inks licensing pact with Cyclopharm for imaging agent in US

Jubilant DraxImage Inc, a wholly-owned subsidiary of Jubilant Life Sciences Ltd, on September 14, 2015 entered into an agreement with the Australia-based Cyclopharm Limited (CYC) granting DraxImage an exclusive license to market and distribute Technegas in the US. Technegas is an imaging agent primarily used in Pulmonary Embolism (blockage of lung arteries) and is currently being sold in 55 countries including EU, Japan and Canada by Cyclopharm.
 
Jubilant DraxImage will assist Cyclopharm with the development and financing of the phase III clinical trials for Technegas, and any other steps required to file for and obtain USFDA approval. The primary commercial terms of the term sheet are as follows:
   
As per the agreement, DraxImage will provide at risk up to $ 4.5 million to fund the US FDA clinical trial currently under development with any additional costs to be funded by both parties equally. Upon successful completion of the US FDA trial, Jubilant DraxImage will be able to convert US FDA trial costs into CYC common stock up to a maximum of 15 percent of the total Cyclopharm shareholding. Besides, Jubilant DraxImage will pay Cyclopharm a 17.5 percent royalty on sale in addition to an agreed margin above the cost of goods sold.
 
“We are pleased to partner with CYC for the clinical development and potential US market introduction of Technegas. This partnership reiterates our commitment to add innovative products in our radiopharmaceuticals portfolio and will leverage our existing strengths in the nuclear imaging business,” said Shyam Bhartia, chairman and Hari Bhartia, co-chairman and managing director, Jubilant Life Sciences Limited, in a press release.