extension of licence5 Nov 2007 07:17
The Medical House PLC
Extension to Major Development, Licence and Supply Agreement
#3m in near term payments - #2m payable immediately
The Medical House PLC ("TMH" or the "Company") (AIM:MLH), the drug delivery
specialist, is pleased to announce that it has agreed to extend the term of the
Development, Licence and Supply Agreement for its ASI disposable autoinjector
which was signed in December 2006 with a leading global pharmaceutical company.
TMH has recently commenced work on the pre-commercial phase of the agreement's
development programme.
The original agreement was for an initial supply period of five years with
projected revenues to TMH of #27 million, of which #18 million was for
technology access, or licence, fees. The agreement now has an initial supply
period of at least six years and, at the request of TMH's partner, may be
extended to approximately 16 years.
Revenue projections for the revised agreement are now c. #34 million of which c.
#23 million are for licence payments in respect of TMH's proprietary ASI
technology. The minimum payments to TMH under the agreement are also being
increased to #20.5 million over the revised initial six-year term of supply, of
which c. #15 million is in licence fees.