Comvita signs global licensing deal with Derma for Medihoney

Comvita Ltd., which develops products based on the medicinal properties of honey, will sign over the global licensing rights to its Medihoney products to Derma Sciences Inc. for US$4.25 million in cash and stock, and ongoing royalties.

The deal is dependent on Princeton-based Derma’s successful capital raising and listing on the Nasdaq next month, Comvita said in a statement today. Under the agreement, Derma will have worldwide rights in perpetuity to manufacture and sell the products to the professional and medical market. Comvita will retain sales rights to the over-the-counter market and supply ‘medical grade’ manuka honey to Derma.

Under an earlier deal signed in 2006. Derma had rights for five years. 

Comvita will receive US$2.25 million in cash and US$2 million in Derma shares, with a further $2 million of payments over three years, dependent on sales milestones. Comvita currently holds 10% of Derma and its stake will remain at that level through the capital raising, it said.

“We have a great of confidence in Derma’s ability to exploit the considerable opportunity for Medihoney in the professional market,” said Comvita chairman Neil Craig.

Shares of Comvita rose 1.6% to $1.30 and have gained 11% in the past three months.

Businesswire.co.nz

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