TFS Corp. Ltd.'s 50% owned joint venture entity, Santalis Pharmaceuticals Inc., has signed a license agreement with a global pharmaceutical company for the marketing of certain of Santalis’ dermatology products using Indian Sandalwood oil.
The company said the dermatology products will contain TFS's Indian sandalwood oil through a new long-term exclusive supply agreement which has been executed in conjunction with the license.The undisclosed global pharmaceutical company is reportedly a world leader in dermatology products with an extensive product portfolio available in 80 countries.
The license agreement contemplates worldwide commercialization of certain of Santalis’ current and future over the counter product ranges on an exclusive basis, with an initial launch in the U.S. expected at the end of 2014. The agreement contains typical upfront and short-term milestone payments and annual royalties based on product launches and revenues from product sales. The license agreement is terminable by either party under certain conditions including a two year notice period by the pharmaceutical company.
“This agreement is an important milestone for our product and clinical development program, and has been achieved just three years into our joint venture with TFS," said Paul Castella, Santalis' CEO. "The quality of our pharmaceutical partner, their longstanding dedication to patient wellbeing, and their ambitions for the products in the marketplace are a testament to the efficacy and clinical benefit of sustainable Indian Sandalwood oil-based products in the treatment of important dermatological conditions.”
Frank Wilson, CEO of TFS, said: "Santalis’ agreement with a world class pharmaceutical partner opens up a new and substantial market for TFS's Indian Sandalwood oil. The supply agreement broadly mirrors our current price for Indian Sandalwood oil and has the potential to consume a significant proportion of TFS's oil output into the long-term. TFS expects these agreements to be the first of many such product opportunities as TFS's Indian Sandalwood oil becomes an increasingly important natural ingredient in the rapidly expanding global market for dermatology, which is currently estimated to exceed $20 billion per annum."