On August 3, 2004, Strata Pharmaceuticals, Inc. and Micrologix Biotech Inc. entered into a collaboration and license agreement to develop and commercialize Micrologix’s MBI-226, a compound in phase III clinical development for the prevention of catheter-related infections.
Under the terms of the agreement, Strata receives the exclusive North American and European commercialization rights for MBI-226. Micrologix received a US$1.5 million up-front payment and an equity investment of US$500,000 in common shares, up to US$30 million in additional development and sales based milestones and a double-digit royalty on net sales.
Micrologix was represented by James Hatton of Farris on the collaboration and license agreement, and Hector MacKay-Dunn, Q.C., assisted by Rosanna Tallarico, for the securities issuance. Strata was represented by Key Shin and Otis Littlefield of Morrison & Foerster for the collaboration and license agreement, and Jay de Groot and Clint Davis for the securities issuance, with assistance from Fred R. Pletcher of Borden Ladner Gervais on Canadian securities issues.