BioCentury
ARTICLE | Company News

Pacgen, General Biologicals Corp. deal

March 31, 2014 7:00 AM UTC

The companies closed a deal under which Pacgen granted General Biologicals exclusive, worldwide rights to develop and commercialize products containing PAC-113 or related peptides to treat oral, vaginal, dermatological and ophthalmic conditions. The companies announced a preliminary deal in January. The deal excludes transitional skin-mucous membrane areas of the mouth. Pacgen will receive $250,000 up front and minimum annual royalties of $50,000 independent from sales or development. Pacgen is also eligible for a $50,000 milestone payment each time General Biologicals receives a regulatory approval and royalties of 12% of net sales or sublicensing revenues. As of Feb. 17, General Biologicals owned about 9.6 million Pacgen shares, or about 20%, and General Biologicals Chairman Tsong Chin Lin owned about 10.7 million shares, or about 23% (see BioCentury, Feb. 3). ...