logo
Plus   Neg
Share
Email

Stock Alert: Pulmatrix Inc. (PULM)

Pulmatrix Inc. (PULM) has entered into a Collaboration and License Agreement with Sensory Cloud Inc., a privately held company, to develop and commercialize a potential nasal prophylactic and anticontagion product for COVID-19.

Under the terms of the agreement, Pulmatrix has granted Sensory Cloud an exclusive, worldwide, royalty-bearing license to PUR 003 and PUR 006 (NasoCalm), the Company's proprietary salt formulations for aerosol nasal administration. The Licensed Products include OTC nasal delivery to potentially reduce the pathogenic risk and transmissibility of the pathogens, including SARS-Cov-2, which causes COVID-19.

As per the agreement, Pulmatrix stands to earn escalating royalties of 7% in 2020, 14% in 2021 and 17% over the remaining life of the agreement for the out-licensing intellectual property of NasoCalm to Sensory Cloud.

In addition, Pulmatrix is entitled to receive a milestone payment of $1 million following the achievement of aggregate net sales of all Licensed Products of $20 million.

David Edwards, CEO of Sensory Cloud, said, "As the COVID-19 pandemic continues to evolve, there is an urgent need for practical, easy to administer and widely available interventions to prevent the spread of disease. We are encouraged by the data for Pulmatrix' NasoCalm, and believe Sensory Cloud's unique platform for personal olfaction will provide an effective, affordable and fast-to-market way for bringing NasoCalm to healthcare workers and others on the front lines as we battle this unprecedented challenge. Importantly, NasoCalm's demonstrated safety should enable future over-the-counter options to the broader population, with the potential to mitigate the effects of this devastating pandemic."

PULM has traded in a range of $0.61 to $1.92 in the last 1 year. The stock is up 3.59% at $1.73.

For comments and feedback contact: editorial@rttnews.com

Business News

Get Access to Premium Stock Alerts with RTT Intelligent Investor.
Follow RTT