Medexus Pharmaceuticals Amends U.S. License Agreement for Treosulfan
Medexus amends its treosulfan agreement, adjusting milestone payments and gaining financial flexibility ahead of expected FDA approval in early 2025.
Breaking News
Dec 03, 2024
Mrudula Kulkarni

Toronto, Ontario, and Chicago, Illinois Medexus Pharmaceuticals (TSX: MDP) (OTCQX: MEDXF) has announced a key amendment to its 2021 exclusive license agreement with medac GmbH, focusing on the commercialization of treosulfan in the United States. This fourth amendment revises the regulatory milestone payments Medexus would owe medac upon FDA approval of the drug, which is under review as a conditioning agent for stem cell transplantation. Depending on the FDA-approved product label, milestone payments will range from $15 million to $45 million, reflecting varying levels of clinical data outcomes.
CEO Ken d’Entremont expressed optimism, stating, “We’re pleased to have reached terms that fairly reflect the value treosulfan brings to our portfolio. With FDA approval anticipated by January 30, 2025, we believe that the label will likely support the lower milestone range. If approved, we expect the drug could generate over $100 million in annual U.S. revenue within five years of its launch, significantly boosting our growth trajectory.”
Medexus CFO Brendon Buschman emphasised the importance of the new payment structure. “The amendment provides greater flexibility, allowing us to defer most of the milestone payments until early 2026,” he explained. This flexibility, coupled with options like utilising operational cash flow or securing additional financing, ensures Medexus is well-positioned to manage the costs associated with the treosulfan launch while maintaining its financial stability.