Biomatrix Inc. announced late Tuesday at the H&Q conferencethat it has amended its multiyear distribution agreements withSwedish pharmaceutical manufacturer Kabi Pharmacia AB, fortwo of its products, hylan fluid and hylan gel, for ophthalmicviscosurgery.
The Ridgefield, N.J., biomaterials company (NASDAQ:BIOX) willreceive $12.5 million in payments from the amendedagreements, which expand and extend its relationship withKabi Pharmacia. Biomatrix received $3 million on signing theagreements, and will also receive $250,000 in minimumroyalties each year until Jan. 1, 1996, when payments willincrease to $1.25 million per year for the next seven years. Inaddition, if in any year running royalties on net sales ofBiomatrix products exceed $1 million, Biomatrix will getpayments equal to the excess amount of such royalties.
In return, Kabi Pharmacia received an exclusive worldwidelicense to use, manufacture, market and sell Biomatrix's hylanfluid and hylan gel products for use in human ophthalmicviscosurgery. Kabi will be responsible for obtaining regulatoryapprovals for the products.
Additionally, Kabi Pharmacia and Endre Balazs, Biomatrix'schief executive officer and chief scientific officer, amendedtheir agreement concerning highly purified high molecularweight hyaluronan. Balazs was granted exclusive rights tomanufacture, use and sell this compound, according to hispatent in the musculoskeletal field. He assigned those rights toBiomatrix. Kabi Pharmacia retained the exclusive rights tomanufacture, use and sell Healon products for ophthalmicindications and licensed products for veterinary use.
Biomatrix's stock was up $1.25 on Wednesday, closing at $11.
-- Jennifer Van Brunt Senior Editor
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