Form 8-K for DNAPRINT GENOMICS INC
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8-Apr-2005
Entry Material Agreement, Financial Obligation Matter
Item 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
Beth Israel Deaconess Medical Center License Agreement
Effective April 4, 2005, the Registrant entered into a License Agreement (the Agreement) with Beth Israel Deaconess Medical Center, a Massachusetts nonprofit corporation (Beth Israel) to develop a new, more potent and longer acting form of the anemia drug Erythropoietin (EPO).
EPO is a glycoprotein naturally made by the body to stimulate red blood cell production; the currently marketed forms are manufactured using recombinant DNA technology and are used to treat anemia or low blood cell count. Under the Agreement, Beth Israel has granted the Registrant an exclusive license to United States and foreign patents related to certain forms of EPO. The Registrant has the right to develop, use, market and sell products derived from the licensed patents.
In exchange for the license, the Registrant paid Beth Israel a $25,000 signing fee and agreed to make certain milestone payments linked to its progress in developing marketable products from the licensed technology. The total of payments, if all milestones are reached, is $2,150,000. The milestone payments are nonrefundable. Up to $200,000 of this amount is creditable against future royalties. In addition to the milestone payments, the Registrant must also pay Beth Israel an annual royalty of 4% of the net sales of all products developed from the licensed technology. A minimum royalty payment of $100,000 a year is due upon the commencement of commercial sales in any territory worldwide.
