IGI signs new deal with Dermworx

US firm IGI has signed a new exclusivity, manufacturing and supply agreement with Dermworx, which supersedes and replaces the earlier accord, dated October 11, 2006, between the two firms.

Under the terms of the new deal, IGI will recognize the $250,000 payment received from Dermworx in 2006 for the development of a 2% Salicylic Acid Novasome product. IGI will receive manufacturing revenues and royalties on sales of this drug starting in the fourth quarter. IGI will grant Dermworx exclusive rights to market and sell the Salicylic Acid Novasome in North, Central and South America, and the UK. To maintain exclusivity, Dermworx will guarantee IGI minimum royalties for the first year of the product sale period. This will be increased to 150% for the second year sale period and minimum royalty payments will remain the same each year thereafter.

IGI has also granted Dermworx a right of first refusal, effective until January 31, 2008, for the development of two additional Salicylic Acid Novasome formulations, one for the treatment of psoriasis and another for the treatment of seborrheic dermatitis.