AIT Therapeutics acquires license to eNOGenerator from NitricGen for $2M plus milestones
January 31, 2018AIT Therapeutics Inc. (OTC:AITB), a clinical-stage biopharmaceutical company focused on developing inhaled Nitric Oxide (NO) for the treatment of patients with serious lung infections and pulmonary hypertension, will acquire global license to the eNOGenerator from NitricGen.
AIT on Wednesday said it has entered into an agreement acquiring a global, exclusive, transferable license to the eNOGenerator and also associated critical assets including intellectual property, know-how, trade secrets and confidential information from NitricGen, Inc.
According to the press release, AIT will pay NitricGen $2 million total in up-front, clinical, and regulatory milestone payments, with the majority of this amount pertaining to regulatory milestones, and a low single-digit royalty on sales of the delivery system containing the generator. The deal also includes warrants to purchase an aggregate of 100,000 shares of AIT common stock at a strike price of $6.90 per share.
AIT’s CEO Steve Lisi sees the potential of this system to be transformative for the delivery of NO in any setting, as the company has already completed the vast majority of its commercial manufacturing process.
Lisi, who is also the chairman of AIT Therapeutics, said that the system will be usable in 2019 for primary pulmonary hypertension in neonates (PPHN) in 2019, bronchiolitis in 2020 and nontuberculous mycobacteria (NTM) infections of the lung in 2021.
NitricGen describes the eNOGenerator on its website as the technology for the treatment of slow or difficult to heal wounds. The company said it was initially targeting the market for treatment of chronic diabetic foot ulcers. However, the eNOGenerator is a platform technology that may be easily modified to treat other chronic wounds such as pressure and venous ulcers and potentially numerous other conditions as the promise of gaseous nitric oxide therapy is further researched and applied to other medical conditions.
AITs shares were at $5, on January 31, 1% up from the previous closed at $4.95
