Delivra (TSX-V:DVA) has entered into a technology licensing agreement with closely-held Kalytera Therapeutics, which is developing a portfolio of non-psychoactive cannabinoid and endocannabinoid-like medicines across a range of disease states, with an initial focus on bone health.
Under the accord, Delivra will license its proprietary transdermal delivery technology to Kalytera for its exclusive use with two synthetic cannabinoid compounds, which Kalytera has under license (KAL436/439 and KAL671) and only for use in specific indications, including bone healing, osteogenesis imperfecta, and osteoporosis.
The licensed territory is worldwide, but excludes Canada. During the term of the initial 10-year license, Kalytera is required to make various milestone payments to Delivra through a combination of cash and Kalytera stock during the FDA approval process, followed by a royalty to Delivra on resulting product sales, if an approved drug is on the market.
In addition, Kalytera may also take up a non-exclusive license for the use of Delivra’s technology for transdermal delivery of cannabis plant extracts or isolated active ingredients from the cannabis plant for the same indications in non-FDA regulated markets.
If all milestones were met, the total cash and stock payments would be approximately $1.4 million.
“We believe our delivery platform provides a strong value proposition both for existing and new active pharmaceutical ingredients and anticipate that this transaction will be one in a series of deals that showcase the breath and value of the Delivra technology,” Chris Schnarr, president, said in a statement.