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LONDON (Alliance News) - Venture Life Group PLC said Monday it has agreed to sell some trademarks for one of its dermatology products to an undisclosed existing customer.
Under the deal it will get an up-front cash payment, sales-based milestone payments, and guaranteed additional manufacturing business through its Italian facility which is expected to generate an average of at least EUR500,000 in additional yearly revenues for at least the next five years.
The trademarks being sold cover a number of territories, including some territories where it already had distribution partners for the product. In these territories the customer will take over the existing distribution agreements with Venture's permission. It said that revenues from the distribution agreements it expects to transfer to the customer as part of the deal were GBP50,000 in the half year to end-June, 2014.
Venture said it has retained some trademarks for the product, including for the markets of China and India.
"Through this agreement Venture Life will benefit from this growth through guaranteed additional manufacturing revenues for our facility in Italy, and together with the further strengthening of the relationship with the customer, this additional revenue is expected to make a material contribution to group profitability over the minimum five year term of the agreement," said Chief Executive Officer Jerry Randall in a statement.
Venture Life will announce its 2014 results on March 25.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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