Esprit Pharma acquires rights to Estrasorb from Novavax for $10 million

By Angela McDaniels

Seattle, Oct. 24 - Esprit Pharma Inc. said it paid $10 million plus royalties to acquire the exclusive North American rights to Estrasorb estradiol topical emulsion from Novavax Inc.

Financial terms were not disclosed when the agreement was announced on Oct. 18 but the details were released in a form 8-K filed with the Securities and Exchange Commission Monday.

The agreement provides for an initial payment from Esprit of $10 million, of which $2 million was paid in cash and $8 million will be paid in the form of a promissory note due no later than Dec. 30.

Esprit is required to make an additional $2.5 million cash payment on the first anniversary of the agreement, to pay a royalty on all net sales of Estrasorb in North America and to make certain milestone payments based on pre-determined net sales levels.

The drug uses Novavax's micellar nanoparticle platform to deliver hormones through the skin to treat vasomotor symptoms (hot flashes) associated with menopause.

Esprit is based in New Brunswick, N.J., and focuses on the development of genito-urinary and women's health products.

Novavax is a biopharmaceutical company based in Malvern, Pa., that specializes in the drug delivery and biological technologies.

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