BioDelivery Sciences International (BDSI) Announces Proposed Licensing Agreement With Sigma-Tau S.p.A.
10/19/2005 5:11:27 PM
BioDelivery Sciences International (Nasdaq:BDSI) announced today it has come to an oral understanding to license to Sigma-Tau S.p.A., the right to utilize BioDelivery's proprietary formulation and delivery technology in connection with different compounds, with particular focus in the area of oncology. Under the terms of the proposed licensing agreement, which is subject to further negotiation and execution, Sigma-Tau would pay to BDSI an initial $250,000 up-front payment, upon the signing of this letter of intent and an additional $750,000 to be paid upon the accomplishment of certain milestones leading to the filing of the first IND of a compound formulated with BioDelivery's formulation and drug delivery technology. It is anticipated that should a final definitive license agreement be executed by the parties, that BioDelivery would receive additional milestone payments throughout the clinical development of each proposed product, as well as royalties on net sales.