TORONTO, ON–(May 15, 2017) – Easton Pharmaceuticals, Inc. (OTC PINK: EAPH), announces that Easton / BMV Medica have formally accepted a proposal for the sub-licensing of product VS-Sense from a German based multi-national pharmaceutical company for Mexico, which includes an upfront cash payment to Easton / BMV and a royalty payment from all future sales.
After many months of negotiations and several proposals, Easton / BMV have formally accepted a proposal for the sub-licensing of its VS-Sense product, licensed by Easton / BMV through Common Sense of Israel. The formal acceptance now moves the process towards the drafting of a final agreement following the formality to confirm naming and any regulatory impediments. Although final detailed terms of the agreement will be announced on a subsequent press release, following execution of a final agreement, the financial terms have been agreed to and include an upfront cash payment and royalty payments to Easton / BMV on every sale produced. VS-Sense will most likely be renamed to conform with other products being sold in other countries. The sub-licensing agreement confirms the desire of the German based Pharmaceutical giant, who’s name cannot yet be disclosed until a final agreement has been executed, to expand to other large, lucrative and growing markets in Latin America. This agreement was as a result of Easton / BMV previously forwarding an additional payment of $300,000 to Common Sense to secure the rights to VS-Sense and women’s diagnostic product AL-Sense (AmnioSense) where a contract is also close to being finalized with another multi-national Pharmaceutical company.
VS-Sense is the current brand name of the BV (Bacterial Vaginosis) diagnostic test for women and is the same product Bayer Consumer Health had licensed and launched in late 2015 in Europe under its brand, Canestest. Prestige Distribution is currently selling in the US under its brand, Monistat, with multi-million dollars in sales.
In other developments, Easton is nearing completion on negotiations to acquire 100% of BMV Medica SA de CV and all of its assets and revenues. In addition, Easton and BMV have received a positive update and are anticipating a positive announcement towards the regulatory filing of Generic Cancer Drugs Paclitaxel and Docetaxel, currently licensed from BioLyse Pharma of St. Catherines, Ontario, Canada. Easton / BMV were awaiting the final testing document from BioLyse Pharma who is the manufacturer of the 2 Generic Cancer Drugs. The testing document required verification that the raw material (API) sourced from China has the appropriate GMP certification in Mexico clearing the way for the fast track filing to be submitted by Defi Latina — one of only a few authorized third-party reviewers licensed by the Ministry of Health in Mexico to review and pre-approve Regulatory dossiers prior to submission. As was the case with women’s diagnostic product, VS-Sense. The “fast-track” review process through authorized third-party reviewers can speed up approval times from several years to a few short months. VS-Sense was approved within 2 months of regulatory filing.
Easton / BMV acquired licensing and distribution rights from Canadian Drug Manufacturer BioLyse Pharma for generic cancer drugs Docetaxel and Paclitaxel for Mexico and Latin America. The country of origin for the generic cancer drugs is Canada, believed to be one of the top six in the World — along with the USA, Britain, Australia, France and Germany. Mexican Health Authorities traditionally have very few issues with pharmaceutical products manufactured in these countries therefore a fast track approval is possible with purchase orders and sales to shortly follow. The majority of sales in Mexico expected to be to the Mexican government hospitals and institutions. As Canada is part of the North American Free Trade Agreement (NAFTA), Canadian-manufactured pharmaceuticals qualify for the national tender program in Mexico, providing a major advantage over other non-NAFTA manufacturers. The “Docetaxel” market in Mexico is by itself worth tens of millions of dollars annually, and Easton / BMV expects to be able to garner 20% of that within a year of launch, growing to 30% within three years. The total generic cancer drug market in Mexico represents hundreds of millions of dollars.
About Easton Pharmaceuticals
Easton Pharmaceuticals is a diversified specialty pharmaceutical company involved in various pharmaceutical sectors and other growing industries. The Company previously developed and owned an FDA-approved wound-healing drug and currently owns topically delivered drugs to treat cancer and other therapeutic products to treat various conditions that are all in various stages of development and approval. Easton has partnered with BMV Medica SA de C.V. and together, own the exclusive distribution rights in Mexico and Latin America for patented women’s diagnostic and preventative care products from Common Sense Of Israel, along with two generic cancer drugs, Paclitaxel and Docetaxel from BioLyse Pharma of St. Catherine’s Ontario, Canada. Easton has also entered the e-liquids and e-vaporizer market through the acquisition of revenue generating company, iBliss, Inc. with sales expected to once again reach $15 million.
This news release may contain forward-looking statements or expressions within the meaning of the Private Securities Litigation Reform Act of 1995 (The “Act”). In particular, when certain words or phrases such as “hope”, “positive”, “anticipate,” “pleased,” “plan,” “confident that,” “believe,” “expect,” “possible” or “intent to” and similar conditional expressions are expressed, they are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Any investment made into Easton Pharmaceuticals would be classified as speculative and may contain risks. Such risks and uncertainties include, but are not limited to, market conditions, general acceptance of the company’s products and technologies, competitive factors, the ability to successfully complete additional or adequate financing, government approvals or changes to proposed laws and other risks and uncertainties further stated in the company’s financial reports and filings.
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