RE:RE:+Efficacy Results in STEM Pet Oral Care Clinical Trial Under the terms of the agreement, Kane Biotech will create a new subsidiary, STEM, in which Animalcare will invest $3 million in installments over a period of 48 months to acquire, on entering into the agreement, a one-third plus one share equity interest. STEM will be established with a global license over Kane Biotech’s existing range of animal health oral care products and in collaboration with Animalcare will also focus on the research and development of novel animal treatments based on biofilm targeting technology. Animalcare will have licensing rights over future STEM products in Europe and Asia and the option, for a period of six years, to acquire an additional one-sixth stake in the subsidiary for $4 million, payable to Kane.
STEM is designed to be self-financing from day one and will benefit from revenues already being generated in the US, Canada and South America as well as from Europe and Asia.
Additionally, in exchange for Animalcare receiving the right to commercialize Kane’s coactiv+™ and DispersinB® products in global veterinary markets outside the Americas, Animalcare will provide an upfront payment to Kane Biotech along with a series of potential payments linked to various commercial milestones to a combined maximum of CA$2 million (“Licensing Fee”) as well as ongoing royalties
https://ir.kanebiotech.com/press-releases/detail/270/kane-biotech-and-animalcare-to-form-animal-health-company In addition to growing product sales and bluestemTM product expansion, Kane Biotech will also be focused on growing royalty revenue generated by the sale of Dechra’s premium veterinary oral care line. The company aims to achieve a key milestone in the near-term - namely Veterinary Oral Health Council (VOHC) certification. <strong>The achievement of this milestone would result in Kane Biotech receiving a $500,000 USD payment pursuant to the Dechra Agreement</strong>. Kane Biotech is working with key opinion leaders in both veterinary and oral health to help achieve this milestone.<br />
https://d1io3yog0oux5.cloudfront.net/_445053f9dd917738ca4b0011c9429bd8/kanebiotech/db/463/3414/mda/2019Dec31+MDA+Final.pdf Under the terms of this 10-year Agreement, Kane Biotech will receive an upfront payment upon signing along with a series of potential payments linked to various commercial milestones to a combined maximum of USD $2.0 million. In addition, Kane Biotech will receive an ongoing royalty on net sales of its Products by Dechra in North America, subject to certain minimum annual royalty payments by Dechra to Kane Biotech. Terms of the Agreement are confidential between the parties and further financial details are not disclosed. <br />
https://ir.kanebiotech.com/press-releases/detail/171/kane-biotech-announces-exclusive-license-and-distribution<br /> <br /> <br /> <br />