Plethora signs licensing agreement with Recordati for premature ejaculation drug

Urological specialist Plethora Solutions (AIM: PLE) has signed a licensing agreement with international pharma group Recordati for its premature ejaculation treatment PSD502.

Recordati will commercialize the treatment in Europe, Russia, the Commonwealth of Independent States, Turkey and certain North African territories, while Plethora will retain full commercialization rights in the rest of the world.

Under the terms of the agreement, Plethora will receive 5 million euros ($6.4 million) as an upfront payment, then 6 million euros upon grant of variant approval from the European Medicines Agency for a new six-dose can, a payment of up to 10 million euros in total upon first commercial sales of PSD502 in France, Germany, Italy, Spain and Portugal, and up to 25 million euros in aggregate in sales-based milestones. Recordati will also grant Plethora tiered percentage royalties on net sales, ranging from the mid-teens to the mid-twenties for 10 years from first commercial sale, and thereafter at a single-digit percentage royalty rate.