CASTLE ROCK, Colo., July 30, 2012 /PRNewswire/ -- AspenBio Pharma, Inc. (Nasdaq: APPY) today announced that it has executed an exclusive worldwide license agreement with a major international animal health company, providing license and sub-license rights to AspenBio's entire animal health portfolio.
Under the license agreement AspenBio will receive license fees of approximately $1.0 million and milestone payments totaling $2.0 million tied to specified development and regulatory achievements and royalties on licensed product sales. An additional $2.0 million in milestone payments is potentially payable under the agreement associated with expanded development and commercialization efforts by the licensee. The agreement contains standard terms and conditions, including provisions for confidentiality, indemnification and product development and regulatory requirements, all of which will be conducted and funded by the licensee.
Steve Lundy, President and CEO of AspenBio Pharma, commented, "The licensing of our animal health assets is a significant milestone in the ongoing transformation of AspenBio. Following the $12.2 million the company raised in June, this agreement provides additional cash infusion and enables us to concentrate our efforts and resources on our primary corporate objective – the clinical development and commercialization of AppyScore™. Looking ahead, AspenBio expects to finalize its pre-IDE application with the FDA and commence clinical trials for AppyScore in the third quarter of 2012."
For additional details on the exclusive worldwide animal health license agreement, please refer to our Form 8-K filing, which can be accessed from the Investor Relations section of AspenBio's corporate website.About AspenBio Pharma AspenBio Pharma, Inc. is an in vitro diagnostic company focused on the clinical development and commercialization of its lead product, AppyScore™. AppyScore is a unique blood-based test designed to aid in the identification of patients at low risk for acute appendicitis, allowing for more conservative treatment planning. AppyScore is initially being developed for pediatric, adolescent and young adult patients with abdominal pain as this population is at the highest risk for appendicitis as well having the highest risk of long-term health effects associated with CT imaging. For more information, visit www.aspenbiopharma.com. Forward-Looking StatementsThis press release includes "forward-looking statements" of AspenBio Pharma, Inc. ("AspenBio") as defined by the Securities and Exchange Commission ("SEC"). All statements, other than statements of historical fact, included in this press release that address activities, events or developments that AspenBio believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors AspenBio believes are appropriate in the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of AspenBio. Investors are cautioned that any such statements are not guarantees of future performance. Actual results or developments may differ materially from those projected in the forward-looking statements as a result of many factors, including achievement of the required development and regulatory milestones under the license agreement, our and the licensee's ability to successfully complete required product development and modifications in a timely and cost effective manner, complete clinical trial activities for AppyScore required for FDA submission, obtain FDA clearance or approval, cost effectively manufacture and generate revenues from AppyScore and other new products, execute agreements required to successfully advance the company's objectives, retain the management team to advance the products, overcome adverse changes in market conditions and the regulatory environment, obtain and enforce intellectual property rights, and realize value of intangible assets. Furthermore, AspenBio does not intend (and is not obligated) to update publicly any forward-looking statements. The contents of this press release should be considered in conjunction with the risk factors contained in AspenBio's recent filings with the SEC, including its Final Prospectus filed on June 20, 2012. For Investors & Media: Gregory Tiberend / Jason RandoTiberend Strategic Advisors, Inc.(212) 827-0020 firstname.lastname@example.org email@example.com