SEATTLE, WA--(Marketwired - Aug 5, 2016) - Atossa Genetics, Inc. (NASDAQ: ATOS) and Besins Healthcare Luxembourg SARL ("Besins") have agreed, pursuant to a Termination Agreement dated August 4, 2016, to terminate their Intellectual Property License Agreement dated May 14, 2015 (the "License Agreement"), dismiss the legal action relating to the License Agreement pending in the United States District Court for the District of Delaware captioned Atossa Genetics, Inc. v. Besins Healthcare Luxembourg SARL, Case No. 1:16-cv-00045-UNA (the "Litigation"), and settle all claims and counterclaims asserted in the Litigation. Atossa and Besins have further agreed, pursuant to and as set forth in the Termination Agreement, that Besins will assume, and Atossa shall have no further rights to, all clinical, regulatory, manufacturing, and all other development and commercialization of 4-hydroxy tamoxifen and Afimoxifene Topical Gel (the "AfTG Program").
In consideration for Atossa's comprehensive relinquishment of all rights granted in the License Agreement, termination of the License Agreement, cessation of all efforts to develop Afimoxifene Gel, delivery of all API manufactured to date, assignment of a Drug Master File, delivery to Besins of the work product Atossa has completed to date, and other consideration, Besins will reimburse Atossa for out-of-pocket expenses incurred by Atossa to pursue the AfTG Program and will make a termination payment in the total amount of $1,762,931.
"Proceeds from the settlement allow us to recoup our investment in the AfTG Progam and will contribute significantly to our financial resources as we focus on our two lead programs: our Phase II study of fulvestrant administered intra-ductally via our microcatheters and oral endoxifen for breast cancer patients who are refractory to tamoxifen," commented Steve Quay, Ph.D., M.D., Chief Executive Officer and President of Atossa.
About Atossa Genetics
Atossa Genetics, Inc. is a clinical-stage pharmaceutical company developing novel therapeutics and delivery methods to treat breast cancer and other breast conditions. For more information, please visit www.atossagenetics.com.
Forward-looking statements in this press release, which Atossa undertakes no obligation to update, are subject to risks and uncertainties that may cause actual results to differ materially from the anticipated or estimated future results, including the risks and uncertainties associated with the actual cash payment received from Besins, actions and inactions by the FDA, the outcome or timing of regulatory approvals needed by Atossa, lower than anticipated rate of patient enrollment, results of clinical studies, the safety and efficacy of Atossa's products and services, performance of clinical research organizations and investigators, obstacles resulting from proprietary rights held by others, such as patent rights, and other risks detailed from time to time in Atossa's filings with the Securities and Exchange Commission, including without limitation its periodic reports on Form 10-K, 10-Q and 8-K, each as amended and supplemented from time to time.