Phosphagenics Ltd. agreed to sell its global BioElixia beauty brand to Pure Beauty Australia Pty Ltd., a unit of private investment group CEM Group of Companies.

The deal will allow Pure Beauty to market and expand the BioElixia range, which comprises products that contain Phosphagenics' proprietary drug delivery system called targeted penetration matrix, or TPM. The sale is in line with Phosphagenics' strategic decision to focus on core TPM businesses.

Phosphagenics will receive a A$200,000 up-front payment, ongoing royalties of 5% based on net sales of products containing TPM and payments from an associated 10-year TPM supply agreement.

The transaction is expected to close the week of Aug. 14.

As of Aug. 9, US$1 was equivalent to A$1.27.