Medical Developments International, the company behind Australia’s “green whistle” pain relief inhaler, is near to closing a $US54.5 million ($70 million) licensing deal in Europe.
The company says it has signed a term sheet and will now move to contract with an as-yet unnamed “significant pharmaceutical” group with expertise in pain management products to distribute Penthrox, the Melbourne-made emergency pain killer.
CEO John Sharman says the deal underwrites the future success of Penthrox in Europe.
“Our partner estimates peak sales could be circa 10 million units per annum and it will be responsible for investing into the development of Penthrox and registering Penthrox throughout Europe,” he says.
The deal includes a $US7 million on signing and further payments on reaching certain sales and regulatory milestones, to a combined total of $US54 million.
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.
Shares in Medical Developments are trading 12% higher at $2.70.