Nanobiotix, PharmaEngine Terminate Development Pact For Radiation Therapy In APAC Region

Nanobiotix (NASDAQ: NBTX) and PharmaEngine Inc have agreed to terminate the license and collaboration agreement announced in August 2012.

• The agreement provided PharmaEngine exclusive rights to further the development of NBTXR3 in the Asia-Pacific region.
• Nanobiotix filed a prospectus last year notifying PharmaEngine of a material breach of the terms of the agreement.
• PharmaEngine denied any breach and asserted certain material breaches of that agreement by Nanobiotix.
• Pursuant to this termination, Nanobiotix will retain all rights to the development and commercialization of NBTXR3 in the Asia-Pacific region.
• PharmaEngine will receive payments not exceeding $5 million in total.
• In the future, PharmaEngine will be entitled to receive a payment of $7.5 million upon a second regulatory approval of NBTXR3.
• If NBTX announces a new collaboration for the Asia-Pacific region within six months of the agreement's effective date, PharmaEngine will be entitled to an immediate $2.5 million payment.
• PharmaEngine will also receive low-single-digit sales-based royalty for ten years.
• NBTXR3 is a radio enhancer composed of sterile, functionalized, crystalline hafnium oxide nanoparticles.
• It is designed to increase the radiotherapy energy deposit inside tumor cells to increase tumor cell death compared to radiotherapy alone without adding toxicity to adjacent healthy tissues.
• Price Action: NBTX shares closed 5.9% lower at $15.51 on Thursday.