MediWound Ltd. has agreed to settle disputes with Teva Pharmaceutical Industries Ltd. and Polyheal Ltd. involving licensing payments for a wound product.
The settlement covers a 2010 agreement under which MediWound licensed the PolyHeal wound product, then sublicensed the product as well as MediWound's NexoBrid to Teva. The licensing deal required Teva to pay MediWound $6.8 million once a certain milestone was met. However, MediWound said that payment was never received. The funds were to be used for purchasing PolyHeal shares.
Shareholders of PolyHeal then sued MediWound in September 2014 claiming that the company was obligated to pay about $1.5 million in exchange for the shares they held. A November 2017 ruling by the Tel Aviv District Court ordered MediWound to pay $1.5 million to the PolyHeal shareholders who filed the lawsuit against the company.
MediWound has now settled its claim against Teva regarding the milestone payment. Teva will pay MediWound $4 million in cash and will reduce the amount owed by MediWound regarding a 2013 repurchase of shares from Teva. Under the original licensing agreement, Mediwound owed certain revenues from NexoBrid to Teva, and the new settlement reduces the rate to $10.2 million.
MediWound also settled with the shareholders of PolyHeal, who brought the original lawsuit.