Negotiations on Licensing PV-10 in China Opened
August 18th, 2014
Provectus Biopharmaceuticals, Inc. (NYSE MKT: PVCT), a development-stage oncology and dermatology biopharmaceutical company (“Provectus”), announced today that it entered into a Memorandum of Understanding (“MOU”) with Sinopharm-China State Institute of Pharmaceutical Industry (“Sinopharm-CSIPI”), the leader among all pharmaceutical research institutes in China, and Sinopharm A-THINK Pharmaceutical Co., Ltd. (“Sinopharm A-THINK”), the only injectable anti-tumor drug research and development, manufacture and distribution integrated platform within Sinopharm Group.
The key component of the MOU provides that “Sinopharm-CSIPI and Sinopharm A-THINK desire to obtain an exclusive license to commercialize PV-10 within [the People’s Republic of] China territory, and PVCT is willing to grant such license to Sinopharm.”
During the next three months, the parties will seek to enter into a definitive licensing contract, subject to additional negotiation, due diligence, and any required regulatory and corporate approvals. The parties will further address the details of the license; the use of the technology from Provectus to Sinopharm A-THINK in China; the process for commercialization; and payments to Provectus (upfront, milestone and royalties). Provectus intends to manufacture PV-10 in the USA and Sinopharm A-THINK will distribute PV-10 in China.
The MOU, which is governed by Chinese law, stems from negotiations led by Network 1 Financial Securities, a financial advisor to Provectus. The parties met at the headquarters of Sinopharm-CSIPI in Shanghai, China. In attendance were the senior management members of Sinopharm Group, as well as senior Provectus personnel. Provectus presented clinical and nonclinical data of its drug, PV-10. The experts and scientists from Sinopharm-CSIPI and Sinopharm A-THINK had an extensive and substantial discussion with the Provectus team. The MOU provides that “the parties agreed that PV-10 is an advanced innovative drug representing the oncology research trend worldwide, [which] will provide extensive economic and social benefits to [the Chinese] market.”
In addition, the MOU says that all “parties recognized the achievements gained during PV-10’s clinical trial on melanoma, breast cancer and cancer of liver, plus the systematic effect on human immune efficacy, and PV-10 could be applied to other indications such as lung cancer, pancreatic cancer, prostate cancer and kidney cancer.”
The MOU contains customary provisions regarding confidential information, publicity, and intellectual property, and is non-binding upon the parties (except for certain non-material provisions). The MOU shall continue in effect until the earliest of the replacement of the MOU with a definitive agreement, one month prior written notice by either Provectus or Sinopharm, or ninety days from the signing of the MOU.