Comvita signs global licensing deal with Derma
Comvita signs global licensing deal with Derma for Medihoney
Dec. 21 (BusinessWire) – Comvita Ltd., which develops products based on the medicinal properties of honey, will sign over the global licensing rights to its Medihoney products to Derma Sciences Inc. for US$4.25 million in cash and stock, and ongoing royalties.
The deal is dependent on Princeton-based Derma’s successful capital raising and listing on the Nasdaq next month, Comvita said in a statement today.
Under the agreement, Derma will have worldwide rights to manufacture and sell the products to the professional and medical market. Comvita will retain sales rights to the over-the-counter market and supply ‘medical grade’ manuka honey to Derma.
Comvita will receive US$2.25 million in cash and US$2 million in Derma shares, with a further $2 million of payments over three years, dependent on sales milestones. Comvita currently holds 10% of Derma and its stake will remain at that level through the capital raising, it said.
“We have a great of confidence in Derma’s ability to exploit the considerable opportunity for Medihoney in the professional market,” said Comvita chairman Neil Craig.
Shares of Comvita rose 1.6% to $1.30 and have gained 11% in the past three months.