Resverlogix updates on deal with Hepalink

Canadian clinical-stage biotech firm Resverlogix (TSX: RVX) says it has closed a license agreement and formally entered into a definitive stock purchase agreement with Shenzhen Hepalink Pharmaceutical.

The closing of the stock purchase transaction is subject to customary closing conditions for a transaction of this nature and approval of the Toronto Stock Exchange.

Under the license between Resverlogix and Hepalink (The Pharma Letter April 27), should the cardiovascular drug candidate RVX-208 reach certain annual sales milestones in China, Hong Kong, Taiwan and Macau (the Territories) ranging from 500 million renminbi ($61 million) to 10 billion renminbi, Resverlogix will be eligible to receive sales-based milestone payments from Hepalink, each ranging from $5 million to $90 million. In addition, Hepalink will pay Resverlogix a royalty in the amount of 6% of net sales of RVX-208 in the Territories, subject to certain adjustments. The license will expire on a region-by-region basis on the later of the 15th anniversary of the first commercial sale in such region or the expiry date of the last-to-expire of any licensed patent.