) recently completed the sale of its punctal plug drug delivery
system (PPDS) technology to Mati Therapeutics Inc. Mati was
founded by Robert Butchofsky, an ex-president and chief executive
officer of QLT .
We remind investors that on Dec 24, 2012, QLT inked an exclusive
option deal with Mati. As per the terms of the deal, Mati was
granted a 90-day option by QLT to buy the assets related to its
PPDS technology for $0.5 million.
Mati exercised the option on Apr 3, 2013 and both the companies
inked an asset purchase agreement to accomplish the technology
sale. Following the closure of the transaction, QLT received a
further $0.75 million from Mati. QLT is eligible to receive
milestone payments up to $19.5 million under the deal. The amount
will be exceeded in the event of more than 2 drugs hitting the
Apart from the milestone payments, QLT is eligible to receive
royalties (low single digit) on global sales of all the drugs
developed with the aid of the PPDS technology. Moreover, Mati
will pay a fee to QLT on non sales related payments received by
the former pertaining to the technology. Consequently, the deal
is expected to boost Canada-based QLT's balance sheet
QLT, which focuses on developing and commercializing innovative
ocular products for those with high unmet medical needs, carries
a Zacks Rank #1 (Strong Buy). Other Zacks #1 Ranked stocks
Biogen Idec Inc.
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