Aequus Pharmaceuticals Inc (TSXV:AQS; OTC:AQSZF) has signed a term sheet to allow for the exclusive license in Canada to market an undisclosed ophthalmic therapeutic with a European partner.
The unnamed preservative-free therapeutic is a prescription product, which is already approved in certain countries in Europe.
Having met with Health Canada, Aequus expects to submit an application for the therapy’s regulatory approval in Canada in the second half of next year.
With the introduction of the license agreement, Aequus will maintain exclusive rights to the therapeutic in Canada and will have first access to future products from its unnamed European partner’s glaucoma-focused portfolio.
Aequus estimates that the preservative-free therapeutic will see peak yearly sales between $4 million and $6 million and that its revenue for the company will exceed $35 million throughout the duration of the license.
“This preservative-free product will be our third product offering in the ophthalmology field and we are confident we can continue to grow our portfolio of revenue generating ophthalmic products over the near and mid-term,” said Doug Janzen, Aequus’s CEO, in a statement.
“The deal construct is similar to our other co-promotion agreements with no upfront fees and a revenue split going forward,” Janzen added.
Under the deal’s terms, the European partner will supply the therapeutic while Aequus will take responsibility for its marketing and distribution in Canada upon approval of the product by Health Canada.
A specialty pharmaceutical company with a focus on bringing drugs to Canada, Aequus’s pipeline now includes several commercial products in the areas of ophthalmology and transplant. Aequus plans to build on its Canadian platform via the launch of additional products that are either created internally or brought in through an acquisition or a license.
Aequus shares held steady at C$0.16 in Canadian trading on Monday morning.
Contact Ellen Kelleher at [email protected]