LAVAL, QC, April 25, 2019 /CNW Telbec/ - Crescita
Therapeutics Inc. ("Crescita" or the "Company") (TSX: CTX and OTC
US: CRRTF), a Canadian commercial dermatology company with a
portfolio of non-prescription skincare products and prescription
drug products for the treatment and care of skin conditions,
diseases and their symptoms, is pleased to announce that it has
entered into a commercialization license agreement (the
"Agreement") with Cantabria Labs, granting Cantabria Labs the
exclusive rights to sell and distribute Pliaglis in Italy, Portugal, France and Spain (together the "Territories"). Cantabria
Labs is a leading prescription dermatology company in Europe with a presence in over 80
countries.
In consideration of the rights granted under the Agreement,
Cantabria Labs will make the following payments to Crescita: (i) an
upfront payment of €2.5 million (approximately $3.8 million CAD), one half payable upon signing
the Agreement and the remaining half payable following the first
commercial sale of Pliaglis by Cantabria Labs or its affiliates;
(ii) double digit royalties on the net sales of Pliaglis in the
Territories; and (iii) milestones related to the launch and sales
performance of Pliaglis in France,
Spain and Portugal.
In addition, Crescita and Cantabria Labs have agreed that
Cantabria Labs will transfer the manufacturing of Pliaglis to its
new centre for sustainable production in Villaescusa, Spain and that Cantabria Labs will supply the
product to Crescita outside the Territories.
Effective April 1, 2019, Crescita
reacquired the rest-of-world ("ROW") development and marketing
rights for Pliaglis from its licensee, Galderma S.A. ("Galderma").
Crescita already owns rights to Pliaglis in the United States, Canada and Mexico which were reacquired from Galderma in
2015. Pliaglis is approved for sale in 26 ROW countries but
is currently only commercialized in Italy and Brazil with annual ROW product sales of
US$2.5 million in 2018 (approximately
CAD $3.2 million). During a
transition period, Galderma will continue to distribute Pliaglis
for Italy and Brazil. Galderma will also manufacture the
product for Italy, Brazil, Canada and Mexico until other manufacturing is arranged,
but at the longest until March 2021.
"The successful close of these transactions increases our
foothold in the prescription market as we continue to diligently
execute our growth strategy, and, the up-front payments alone will
generate over $2.7 million of
positive cash flow in 2019, strengthening our balance sheet." said
Serge Verreault, Crescita's
President and Chief Executive Officer. "With Cantabria Labs'
specialization in the dermatology space as well as the reach of
their distribution channel in Europe, we couldn't be more pleased to have
Cantabria Labs as our partner. The reacquisition of the ROW
Pliaglis rights will allow us to maximize the potential of the
brand to drive further growth of Pliaglis sales through this and
other strategic partnerships for the 24 countries where Pliaglis is
approved but still remains unlicensed."
About Pliaglis®
Pliaglis, a
lidocaine and tetracaine (7%/7%) formulation, is prescription
topical local anesthetic cream approved in 29 countries that
provides safe and effective local dermal anesthesia on intact skin
prior to superficial dermatological procedures, such as dermal
filler injection, pulsed dye laser therapy, facial laser
resurfacing and laser-assisted tattoo removal. This product
utilizes the proprietary phase-changing topical cream "Peel"
technology. The "Peel" technology consists of a drug containing
cream which, once applied to a patient's skin, dries to form a
pliable layer that releases drug into the skin. Following the
application period, Pliaglis forms a pliable layer that is removed
from the skin allowing the dermatological procedure to be performed
with minimal to no pain.
About Crescita Therapeutics Inc.
Crescita (TSX: CTX and OTC US: CRRTF) is a publicly traded,
Canadian commercial dermatology company with a portfolio of
non-prescription skincare products and prescription drug products
for the treatment and care of skin conditions and diseases and
their symptoms. Crescita owns multiple proprietary drug
delivery platforms that support the development of patented
formulations that can facilitate the delivery of active drugs into
or through the skin. Please visit
www.crescitatherapeutics.com for additional information.
About Cantabria Labs
Cantabria Labs is a
pharmaceutical company with subsidiaries in Spain, Italy,
Portugal, France, Mexico, Morocco and China. With its innovative products and
entrepreneurial spirit, today Cantabria Labs is a leading brand in
dermatological prescription in Europe with the aim of improving people's
health and quality of life. Its presence in over 80 countries has
earned it an excellent international reputation and support.
Cantabria Labs' production centres work in accordance with the
highest quality standards for manufacturing and distributing its
over 30 million product units yearly. Please visit
www.cantabrialabs.com for additional information.
Forward-looking statements
This press release
contains "forward-looking information" as defined under Canadian
securities laws (collectively, "forward-looking statements"). The
words "plans", "expects", "does not expect", "goals", "seek",
"strategy", "future", "estimates", "intends", "anticipates", "does
not anticipate", "projected", "believes" or variations of such
words and phrases or statements to the effect that certain actions,
events or results "may", "will", "could", "would", "should",
"might", "likely", "occur", "be achieved" or "continue" and similar
expressions identify forward-looking statements. In addition, any
statements that refer to expectations, intentions, projections or
other characterizations of future events or circumstances contain
forward-looking statements.
Forward-looking statements are not historical facts but
instead represent management's expectations, estimates, projections
and assumptions regarding future events or circumstances. Such
forward-looking statements are qualified in their entirety by the
inherent risks, uncertainties and changes in circumstances
surrounding future expectations which are difficult to predict and
many of which are beyond the control of the Company.
Forward-looking statements are necessarily based on a number of
estimates and assumptions that, while considered reasonable by
management of the Company as of the date of this press release, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Material factors and
assumptions used to develop the forward-looking statements, and
material risk factors that could cause actual results to differ
materially from the forward-looking statements, include but are not
limited to changes in the business or affairs of Crescita; the
ability of Crescita's licensees to successfully market its
products; competitive factors in the industries in which Crescita
operates; relationships with customers, suppliers and licensees;
changes in legal and regulatory requirements; foreign exchange and
interest rates; prevailing economic conditions; and other factors,
many of which are beyond the control of Crescita. Additional
factors that could cause Crescita's actual results and financial
condition to differ materially from those indicated in the
forward-looking statements include, among others, the risk factors
included in Crescita's most recent Annual Information Form dated
March 18, 2019 under the heading
"Risks Factors", and as described from time to time in the reports
and disclosure documents filed by Crescita with Canadian securities
regulatory agencies and commissions. These and other factors should
be considered carefully, and readers should not place undue
reliance on Crescita's forward-looking statements, as
forward-looking statements involve significant risks and
uncertainties. Forward-looking statements should not be read as
guarantees of future performance or results and will not
necessarily be accurate indications of whether or not the times at
or by which such performance or results will be achieved.
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SOURCE Crescita Therapeutics Inc.