According to the terms of the seven-year agreement, Delcath’s European subsidiary will exclusively license its Chemosat system to Medac for sale in the EU, Norway, Liechtenstein, Switzerland and the UK. Medac is slated to pay $6.8 million to Delcath in a combination of upfront and milestone payments.
Delcath will also receive a fixed transfer price per unit of Chemosat and royalties, according to the agreement. Delcath touted that the deal, which has an optional five-year extension, has a projected value of $45 million over the first seven-year term.
Delcath’s Chemosat system works by isolating the liver’s circulatory system, infusing the liver with chemotherapy and then filtering a patient’s blood before returning it to the patient in a procedure called percutaneous hepatic perfusion.
“With offices throughout Europe and a well-established network among oncology key opinion leaders, medac is a well-suited partner to help advance Chemosat commercialization in the European Union and neighboring countries,” president & CEO Jennifer Simpson said in prepared remarks.
“medac provides the organizational scale, expertise and market reach necessary to help us strive to firmly establish Chemosat in the European treatment landscape for cancers of the liver. Additionally, through this agreement, we obtain immediate resources to support our efforts to advance our clinical development program. This is a highly significant development for Delcath, and we are pleased to be working with a market leader like medac to help this therapy fully realize its potential,” Simpson added.