Nicox Announces Improved Financial Terms from Bausch + Lomb for Vyzulta
Nicox SA announced an amendment to its global licensing agreement with Bausch + Lomb concerning Vyzulta (latanoprostene bunod ophthalmic solution), 0.024%.
Under the original agreement signed in 2010, Bausch + Lomb would have paid Nicox royalties of 10% to 15% on worldwide net sales of Vyzulta, comprising three tiers of royalties triggered by increasing, pre-defined annual sales levels. In consideration of final resolution and release relating to certain alleged issues between the parties, the amendment provides that, from January 1, 2019 the royalties due to Nicox according to the original agreement will increase by 1% over the original royalty on net sales above $300 million per year. Royalties will now be 10% to 16% over four tiers, reaching the maximum tier if and when global net sales exceed $500 million annually. Taking into account Nicox’s royalty payments to Pfizer, the net royalties to Nicox will be 6% to 12%, compared to 6% to 11% originally.
In addition, the potential milestones payable to Nicox by Bausch + Lomb have been increased by $20 million, added to and split between 3 existing milestones at increasing annual net sales levels. The first additional amount payable will be added to the milestone on achievement of $300 million annual net sales and the last additional amount payable will be added to the milestone on achievement of $700 million annual net sales. The total potential milestones due to Nicox have therefore been increased from $145 million to $165 million. The next sales milestone due from Bausch + Lomb remains as originally agreed at $20 million upon Vyzulta net sales reaching $100 million, with $15 million of this milestone paid to Pfizer.
Vyzulta was launched in the US by Bausch + Lomb in December 2017.
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