VANCOUVER, British Columbia, April 4, 2013 (GLOBE NEWSWIRE) -- QLT Inc. (Nasdaq:QLTI) (TSX:QLT) ("QLT" or the "Company") announced today that it has completed the sale of the Company's punctal plug drug delivery system ("PPDS") technology (the "Technology") to Mati Therapeutics Inc. ("Mati"), a development company founded by Robert Butchofsky, QLT's former President & CEO. As previously reported, on December 24, 2012, the Company entered into an exclusive option agreement with Mati under which QLT granted Mati a 90-day option to acquire assets related to QLT's PPDS Technology in exchange for $500,000. On April 3, 2013, following Mati's exercise of the option, the Company and Mati entered into an asset purchase agreement and completed the sale of the PPDS Technology to Mati. Under the terms of the asset purchase agreement, QLT received an additional payment of $750,000 at closing and is eligible to receive potential payments upon the satisfaction of certain product development and commercialization milestones that could reach $19.5 million (or exceed that amount if more than two products are commercialized), a low single digit royalty on world-wide net sales of all products using or developed from the PPDS Technology and a fee on payments received by Mati in respect of the PPDS Technology other than net sales.
"QLT is satisfied to have completed the sale of the PPDS Technology to its most consistently bullish proponent. We are also very pleased that many of our severed employees have been re-hired by Mati Therapeutics. We certainly wish Mr. Butchofsky and his team the greatest success with the PPDS from which our owners at QLT stand to benefit," said Mr. Jason M. Aryeh, Chairman of the Board.
About QLTQLT is a biotechnology company dedicated to the development and commercialization of innovative ocular products that address the unmet medical needs of patients and clinicians worldwide. We are focused on developing our synthetic retinoid program for the treatment of certain inherited retinal diseases.