Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. Adhera Therapeutics, Inc. (737207) 10-Q published on Nov 19, 2019 at 4:04 pm
Reporting Period: Sep 29, 2019
As consideration for the Prestalia Trademark license which the Company assumed in connection with the Asset Purchase Agreement with Symplmed, the Company pays low single digit royalties to Biofarma, an affiliate of Servier and the holder of the Prestalia trademark. For the three month and nine month periods ended September 30, 2019 the Company paid $1,000 and $3,000, respectively, to Biofarma. No royalties were paid for the three or nine month period ended September 30, 2018.
On October 30, 2019, the Company repurchased 20 shares of Series F Convertible Preferred Stock including accrued and unpaid dividends and warrants to purchase 150,000 shares of common stock for $100,000 from our former CEO pursuant to an amendment to the settlement agreement dated April 4, 2019. The Company also committed to purchase from such officer the remaining Series F Convertible Preferred Stock and related warrants for $100,000 by not later than March 1, 2020.
On November 19, 2019, the Company entered into an Amendment No. 4 to the Amended and Restated License and Commercialization Agreement with Les Laboratories Servier, which modified the agreement to delay the date by which the Company would be required to meet certain net sales milestones as set forth in the agreement. As per the license and commercialization agreement, as amended, Les Laboratories Servier may terminate the agreement if net sales of Prestalia® by the Company are below $1.0 million for two successive calendar quarters beginning after June 30, 2020.
On September 4, 2019, we entered into a Co-Promotion Agreement with Allegis Pharmaceuticals, LLC (“Allegis”) to co-promote Allegis’ FDA approved product Nitrolingual® Pumpspray, indicated for acute relief of an attack or prophylaxis of angina pectoris due to coronary artery disease. The Co-Promotion Agreement relates to both the branded and the authorized generic versions of the product.
Our ability to generate revenue from the sale of drug products is currently dependent primarily upon sales of Prestalia®. Prestalia® is the primary product to which we have rights that has been approved for sale. Although we acquired the rights from Allegis Pharmaceuticals, LLC during the third quarter of 2019 to co-promote Allegis’ Nitrolingual Pumpspray, sales of Prestalia® accounted for 100% of our product revenue during the first three quarters of 2019. We do not anticipate that any of our other product candidates would be approved for sale in the near term, if at all, as currently we are not expending resources on the development of any other product candidates, though we may acquire rights to approved products as a result of our product acquisition efforts. Our rights to Prestalia® derive from the license and commercialization agreement between our company and Les Laboratoires Servier. As per such agreement, as amended, Les Laboratoires Servier has the right in various circumstances to terminate the agreement, including, without limitation, if net sales of Prestalia® are below $1.0 million for two successive calendar quarters beginning after June 30, 2020. If our license and commercialization agreement with Les Laboratoires Servier were to be terminated or materially modified for any reason, or if our rights to Prestalia® were to be reduced or eliminated for any reason other than the termination of the license and commercialization agreement, our revenues and business operations would be materially adversely affected, which would likely have a significant impact on the trading price of our common stock.