In response to shareholder enquiry, this is a clarifying note about the agreement recently entered into between NOX and KZA.
The agreement represents a commercial decision reached by both parties that provides NOX with the certainty it needs as it prepares to enter a Phase 2/Phase 3 clinical program for its lead drug candidate, NOX66.
NOX66 has reached a point in its development where it was important that the Company, its shareholders and capital markets generally were left in no doubt about the Company’s ability to exploit its intellectual property.
The NOX-KZA agreement has delivered that certainty, avoiding the risk of any distraction for the Company as it moves closer to the all-important registration studies for NOX66.
In return for a small level of equity (shares and options) in NOX, KZA has released NOX from any claims of ownership it believes it may have had of NOX66 or the IP and technology that underpins it.
The value of this assurance in terms of the shares was agreed to be a cap of 4.9% of the capital structure of NOX over the next 2 years, with that equity escrowed for the next 6 months.
The agreement, confirmed today by an ASX announcement released by KZA, brings the matter to an end. There are no other ongoing payments such as milestones, licence fees, royalties etc.
This agreement means that both companies now can put this matter to rest and focus their efforts and capital resources on their respective drug development programs.