A collaborative research and license agreement between pSivida Corp., certain of its units and Pfizer Inc. was automatically terminated.
Under the agreement signed in 2007 and amended in 2011, pSivida had granted Pfizer an exclusive option to a license to develop and commercialize worldwide a sustained-release bioerodible implant designed to deliver latanoprost by subconjunctival injection for eye diseases in humans, except uveitis.
In exchange, pSivida was entitled to consideration of up to $168.8 million plus royalties, regained all rights to its intellectual property in ophthalmic applications previously included in the original agreement other than pursuant to the restated agreement, and had rights to develop and commercialize the product if Pfizer did not exercise its option to do so.
Pfizer paid pSivida and its units $2.3 million as an upfront payment in June 2011.
On Oct. 27, pSivida elected to cease development of the product and notified Pfizer, which had to decide whether to solely fund further development and commercialization of the product.
Pfizer did not submit a funding option notice by the Dec. 26 deadline, resulting in the termination of the agreement. After the termination, pSivida has the right, alone or with or through other persons with rights, to Pfizer intellectual property necessary to develop, manufacture and commercialize the product. If pSivida provides the notice but does not actually cease all development activities for at least one year, then the automatic termination would be null and void and the restated agreement will remain in effect.
Additionally, pSivida eliminated the position of vice president of corporate affairs and general counsel, resulting in the termination of Lori Freedman as vice president of corporate affairs, general counsel and company secretary, effective Dec. 26. Freedman will cooperate with the company and its units and affiliates for up to 20 hours in both January 2017 and February 2017 for all matters she has knowledge of, was involved in or handled in her former role.