MediGene Completes the Transfer of Eligard Rights for EU Countries to Astellas
MediGene AG announced that exclusive European rights to the cancer drug Eligard® have been transferred to Astellas Pharma Europe Ltd., with effect from March 1, 2011. This will trigger a second milestone payment from Astellas to MediGene, amounting to EUR 15 million, as agreed in the July 2010 contract. Further, and per the contract, from March 1, 2011 MediGene will receive a 2% share in Eligard® net European sales. Importantly, all costs to and obligations of MediGene AG associated with the future supply of Eligard® to Astellas have ceased.
According to the contract, MediGene is entitled to a total of EUR 25 million, paid in three tranches. MediGene received the first payment of EUR 5 million upon signing of the contract, and the last payment, also totaling EUR 5 million, will become due upon the transfer of rights to countries outside the EU. This is expected towards the end of 2011 or early in 2012.
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