Medical Developments International, the company behind Australia’s “green whistle” pain relief inhaler, has closed a $US54.5 million ($A76 million) licensing deal in Europe.
Its shares are up about 3% in early trade to $2.35.
The deal allows Mundipharma International Corporation to license, develop and commercialise Penthrox, the self-inhaled analgesic for the treatment of emergency pain.
Mundipharma will have exclusive product rights in 39 European markets including France, Germany, Italy and Spain, but excluding Hungary, Republic of Ireland and the UK.
Under the terms of the agreement, Mundipharma will pay Medical Developments upfront and milestone payments of up to $US54.5 million, including $US7 million on signing.
Medical Developments CEO John Sharman says Mundipharma has the reach and financial capacity to drive sales.
The green whistle was developed in Australia and has been used by surf clubs, ambulances, defence forces and sporting leagues for 30 years.
Penthrox has significant advantages over other analgesics such as nitrous oxide and morphine in that it is rapid, self-administered, non-addictive, non-narcotic, safe to use and provides strong pain relief.
Medical Developments International is using a new lower cost manufacturing process developed with the CSIRO to increase production of Penthrox’s underlying drug methoxyflurane by ten-fold.
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