LONDON (Thomson Financial) - Melbourne-based Phosphagenics Ltd said its
dietary supplement commercial partner NBTY Inc has ended the licence agreement
between the two companies, and the termination will be effective six months
after notice.
Phosphagenics will be entitled to minimum royalties as specified in the deal
and expects minimal financial impact as the agreement was due to expire in July
2008.
It added that it will pursue alternative commercial arrangements for its
vitamin E phosphate.
In 2003, the company signed an agreement with Zila Inc for an initial five
years and granted the rights to market Phosphagenics' vitamin E phosphate in the
US, Canada and Indonesia.
NBTY acquired the agreement after it bought Zila's nutraceuticals unit in
2006.
Phosphagenics and the NBTY group, a nutrition-supplement maker, had since
been trying to amend the terms of the licence, but could not reach an agreement,
the biotechnology company said in a statement.
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