Cypress, Fresenius AG deal

The companies signed a definitive agreement for Fresenius and its Fresenius Hemotechnology Inc. subsidiary (Concord, Calif.) to acquire an exclusive license to distribute CYPB's Prosorba column treatment for rheumatoid arthritis in the U.S., Europe, Latin America and, under certain conditions, Japan and select Asian countries. The companies will jointly commercialize the product in the U.S., with CYPB marketing the column to rheumatologists. Fresenius is responsible for clinical trials and registration outside the U.S. The partnership is contingent on FDA approval and product labeling.

Fresenius will make an upfront equity investment in CYPB of $1.5 million and additional license payments of up to $54 million based on sales. The companies will share U.S. profits equally until sales reach a pre-determined threshold, after which CYPB will receive 60 percent and Fresenius 40 percent of the profits. Profits in countries outside the U.S. will be shared equally. ...