Terms of this agreement call for upfront and milestone payments, as well as service fees to ProMetic. Potential revenues to ProMetic from Hepatitis B Hyperimmune direct sales in North America are to exceed $30 M annually, which are expected to commence in 2011.
The first product to be developed will target the Hepatitis B Hyperimmune market which is currently estimated in Europe and in the U.S. to be at $200 M and is expected to be at $400 M by 2015.
Kedrion has in-licensed ProMetic's technologies for the manufacturing of hyperimmune products in Europe. Royalties, licensing and service fees for the sales of products in Europe will be paid by Kedrion to ProMetic with ProMetic retaining the commercial rights for the fully developed hyperimmune products for the North American market. ProMetic will in turn pay Kedrion royalties on its sales of the hyperimmune products in North America.
The product development program, including the clinical trial designed to meet U.S. and European regulatory requirements will be funded by Kedrion, who will be the holder of the products registration for both markets.
"This agreement with Kedrion will leverage ProMetic's ability to penetrate into the North American hyperimmune product market and expand on our existing revenue base," commented Mr. Pierre Laurin, President and Chief Executive Officer of ProMetic.