"Medexus Pharmaceuticals, a leading specialty pharmaceutical company with a strong North American commercial platform and a growing portfolio of innovative and rare disease treatment solutions, recently completed an agreement with NX Development Corporation, the licensor of Medexus's rights to Gleolan in the United States, to terminate the license, supply, and distribution agreement between the parties and return responsibility for Gleolan in the United States to NX Development Corporation as of a date no later than March 31, 2025. Under the terms of the termination agreement, Medexus will receive an agreed per-unit amount on units of Gleolan sold by NX Development Corporation through June 30, 2025 that approximates the product's past per-unit contribution to Medexus during the term of the now-terminated agreement, which will reduce Medexus's royalty payment to NX Development Corporation for fiscal year 2025, due in June 2025.
""We are pleased to have successfully arrived at a mutually acceptable arrangement regarding transition of responsibility for Gleolan in the United States,"" said Ken d'Entremont, CEO of Medexus Pharmaceuticals. ""We view this outcome as fair to Medexus and its stakeholders without compromising future availability of Gleolan for the eligible patients who need it. We wish the NX Development Corporation team all the best in their future endeavors with this product.""
Under the terms of Medexus’s new license, supply, and distribution agreement, Medexus will commercialize Gleolan in the United States and will pay NXDC annual royalty payments (tiered based on net sales relative to an annual minimum baseline and net of supply price paid) and periodic low- to mid-single-digit-million dollar milestone payments (including an upfront payment, two payments triggered by passage of time, and three payments triggered by achievement of net sales thresholds). NXDC will supply Gleolan to Medexus and will remain the sponsor of the new drug application for Gleolan on file with the US Food and Drug Administration.
This transaction will allow NXDC, as sponsor, to continue the company’s important research and development activities, including pursuit of additional indications for Gleolan. Medexus US’s exclusive commercialization rights extend to one additional indication, meningioma, with the opportunity to negotiate commercialization rights to future indications. The initial term of the parties’ arrangement will extend through and including March 31, 2028 with successive two-year extension terms thereafter.
We are thrilled to license Gleolan in the United States and continue to drive our business forward, said Ken d’Entremont of Medexus. We believe Gleolan has a bright future and testing is currently underway for its use for meningioma, which would be a new indication. This product fits extremely well into our portfolio. We are already very familiar with Gleolan given our successful launch of the product in Canada early last year. Extending our Gleolan distribution rights into the United States will allow us to continue developing our US operations."