The deal, which the companies announced in June, eliminates future royalties for Metabolix in exchange for $2 million. The deal also includes 2 additional Metabolix production strains and related IP, the company said.
Metabolix’s agreement with Lexington, Mass.-based Tepha includes the licensing of its Metabolix PHA biopolymer technology for use in certain medical applications, and under the amended license, Tepha will retain that license,as well as 2 more for producing it’s devices.
“The buy-out of our royalty obligation in conjunction with Metabolix was financially advantageous for both companies. Specifically for Tepha, the cash flow from our savings will help finance the continued development of our core technology as well as pre-clinical and clinical testing of new applications,” prez & CEO Andrew Joiner said in a press release.
In June, Cambridge, Mass.-based Metabolix said it was “evaluating strategic alternatives” for its biopolymer business and Yield10 crop science program, and that it is engaged in efforts to secure future funding for its strategic review process and operations, according to a press release.