26 May 2021 07:00
CIRCASSIA GROUP PLC
Settlement Agreement reached with Beyond Air
Oxford, UK - 26 May 2021: Circassia Group plc ("Circassia" or "the Company"; AIM: CIR), a medical device company focused on respiratory diagnostics and monitoring, today announces that it has signed an agreement to settle its contractual dispute with Beyond Air Inc. with regard to the licensing to Circassia by Beyond Air in January 2019 of its LungFit® product (the "Settlement").
Under the terms of the original licence agreement, Circassia issued $10.5 million of Circassia shares to Beyond Air during the first half of 2019. Under the terms of the Settlement, Circassia will surrender its rights to the LungFit® product in exchange for payments by Beyond Air for up to a maximum of $16.5 million, payable in cash as follows:
· $2.5 million within 60 days of the approval of LungFit® by the FDA ("FDA approval")
· $3.5 million within 60 days of the first anniversary of FDA approval
· $4.5 million within 60 days of the second anniversary of FDA approval
Circassia will also be entitled to a further royalty of 5% of net sales of LungFit®, commencing on the second anniversary of FDA approval and capped at a maximum of $6 million.
Ian Johnson, Circassia's Executive Chairman, said: "We are pleased to have been able to resolve this dispute without recourse to formal arbitration, with its associated long timescales and significant legal expense."
This announcement contains inside information for the purposes of the retained UK version of the EU Market Abuse Regulation (EU) 596/2014 ("UK MAR") and is disclosed in accordance with the Company's obligations under UK MAR. This announcement is being made on behalf of the Company by the directors named below.
Contacts
Circassia
Ian Johnson, Executive Chairman Tel: +44 (0) 1865 405 560
Michael Roller, Chief Financial Officer
N+1 Singer (Nominated Adviser and Broker)
Aubrey Powell/ Jen Boorer/ Hannah Woodley Tel: +44 (0) 20 7496 3000
About Circassia
Circassia is a medical device company focused on respiratory diagnostics and monitoring. Our market-leading NIOX® products are used in clinical settings by physicians around the world to help improve asthma diagnosis and management and by leading research organisations conducting clinical studies on behalf of pharmaceutical companies. Customers are able to buy products and receive customer service via dedicated teams in the United States, UK, Sweden, Germany and China, on-line in some regions and our network of global partners. For more information please visit www.circassia.com.