BioCentury
ARTICLE | Company News

Melmed Holdings, Uluru deal

October 1, 2012 7:00 AM UTC

Uluru signed a binding term sheet to grant Melmed worldwide rights to commercialize Uluru's OraDisc transmucosal erodible film delivery technology for oral and dental applications. Uluru will have a 25% stake in a subsidiary that Melmed will establish to license the rights, plus 5% royalties on sales. Melmed will also receive a 24-month option to license the OraDisc technology for use in migraine, nausea and vomiting, pain and cough and cold applications. Melmed will purchase 5 million shares of Uluru for $2 million, or $0.40 per share. The price is a 100% premium to Uluru's close of $0.20 on Sept. 24, the day before it announced the deal. Melmed will also receive a one-year warrant to purchase 3 million Uluru shares for $18 million, or $0.60 per share. Uluru has developed OraDisc B, a mucoadhesive erodible disc containing 15 mg of benzocaine to treat oral pain and OraDisc W, an erodible whitening strip for teeth. The products are not yet on the market. ...