Unigene Laboratories has divested its non-core asset, Site Directed Bone Growth (SDBG), by assigning seven patent applications to Kieran Murphy, LLC. In addition, Unigene terminated an exclusive license agreement and consulting agreement with Kieran Murphy, LLC, as well as a license option agreement and research agreement with Yale University. In exchange for the assignment of the patents, Unigene will receive sales royalties in excess of 7% and will receive 40% of any future licensing revenue and/or 40% of all considerations received upon the subsequent sale of the SDBG patent portfolio by Kieran Murphy, LLC. Kieran Murphy, LLC is a development stage company founded by Dr. Kieran Murphy, the vice chair and chief of Medical Imaging at the University of Toronto.
Greg Mayes, Vice President of Corporate Development and General Counsel of Unigene, stated, "SDBG was the one remaining non-core asset that did not fit Unigene's high valuation drug development and oral peptide drug delivery strategy. We have now found an excellent home for this otherwise valuable asset. We have every confidence that Dr. Murphy will apply the right Resources and expertise to quickly demonstrate proof of concept and license out the opportunity to one or more competent commercialization partners. With more than 7% royalties and 40% of any licensing or sales proceeds, Unigene will more than recoup what it has invested in the SDBG program to date and should ultimately secure a satisfactory return on its investment. We wish Dr. Murphy every success with the Program."
Dr. Murphy remarked, "I recognize the tremendous value in the Site Directed Bone Growth Program and also recognized Unigene's need to focus on the strength of its oral delivery platform and cleanly exit the collaboration we began several years ago." Murphy added, "With the IP necessary to exploit this invention squarely in the hands of my company, we will quickly be able to move SDBG into a proof of concept study in a target population investigating the effect of bone compatible cements in combination with a bone anabolic agent on new bone growth in vertebral body adjacent to a vertebra undergoing vertebroplasty. Once the relevance and superiority of this approach is established, our intent is to identify and license potential partners within the medical device space who recognize how important the addition of a biologic is to the surgical outcome."