LONDON (Alliance News) - Plethora Solutions Holdings PLC shares jumped at the open on Tuesday after the company said it has signed a licensing agreement with pharmaceutical company Recordati for the commercialisation of PSD502, Plethora's premature ejaculation treatment.
Shares in the company briefly rose by 20% in opening trade, before paring back the gains to be up 1.3% to 10.25 pence.
Plethora said it expects to receive upfront and milestone payments of up to USD46 million plus royalties under the deal, which will see Recordati take the rights to commercialise PSD502 in Europe, Russia, the CIS, Turkey and certain countries in north Africa.
Under the terms of the licensing agreement, Plethora will get EUR5 million in an upfront payment; EUR6 million upon the European Medicines Agency granting approval for a new six dose can of the product; a payment of up to EUR10 million on the first commercial sales of the product in France, Germany, Italy, Spain and Portugal; up to EUR25 million in sales-based milestones; and tiered percentage royalties in double-digits for 10 years from the first commercial sale, and then at a single digit percentage royalty rate.
Plethora said it remains in talks to further license out PSD502 in a number of other territories, including North America, Latin America, Asia Pacific, the Middle East and sub-Saharan Africa.
The company also briefly noted that it and Recordati have entered into a five-year development, manufacturing and supply deal with Pharmaserve (North West) Ltd for PSD502.
"We are extremely pleased to have signed this attractive licensing deal with Recordati. We are confident that Recordati's significant experience and marketing reach in men's health and urology will allow it to successfully launch and commercialise PSD502 paving the way for us to potentially receive an attractive flow of milestones and royalties," said Plethora Chief Executive Jamie Gibson.
"We are also seeking to generate additional value from PSD502 via further licensing deals and by working to gain FDA approval for this novel treatment for premature ejaculation in the US," Gibson added.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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