WEST CALDWELL, N.J. and TORONTO, June 19, 2018 (Newswire.com) - EastGate Biotech Corp. (OTC PINK: ETBI), a pharmaceutical company that focuses on innovative technological developments specifically in insulin drug delivery for the treatment of Type 2 diabetes, announced it entered into a binding Memorandum of Understanding (MOU) with Nico Innovapharma (www.nicoinnovagroup.com) (www.nilamedica.com), an innovative start up under incorporation, with its principal headquarters in Brescia, Italy. The scope of the MOU is for the licensing of the company's liquid insulin mouth rinse solution.
The terms of the MOU detail the scope of the pharmaceutical product license for the liquid insulin mouth rinse for the European market, which includes 28 countries. Additionally, Nico Innovapharma will be responsible for the manufacturing and distribution in Europe of already available EastGate's nutraceutical products. Nico Innovapharma's licensing agreement is assignable, according to the plan to form a newly incorporated company that includes a consortium of several mid-sized European pharmaceutical companies and to allocate exclusive distribution and commercial rights for liquid insulin mouth rinse and nutraceuticals to already well-established pharma companies operating in each or more than one of the 28 countries.
According to the terms of the binding MOU the parties have up to 60 days to execute a definitive agreement. The definitive agreement will outline the investment based milestones which include the following:
1. $2.0 million USD no later than 60 days upon signing in exchange for 2.0 million preferred shares of ETBI at a price of $1.00/ share.
2. $8.0 million USD equity investment upon the successful completion of a phase 2 study on the liquid insulin mount rinse from the Philippines or any other market in which EastGate or its partner are able to conduct a trial.
3. Up to $20 million USD cash advance for the purposes of funding the clinical trial expenses necessary to secure EMA regulatory approval. In the event the budget exceeds $20 million, Nico Innovapharma will be granted additional shares at the price of $.50/share.
4. $8 million USD milestone payment no later than 60 days after EMA approval of a marketing license provided the budget is not exceeded. In no case will the milestone payments be less than $4.0 million USD.
5. This is a 15 year agreement.
6. Up to 10% Royalty Fee.
"We are pleased to be working with Nico Innovapharma, that serve as a private European investor and player in the pharmaceutical European market, who recognizes innovation in the diabetes space and the role that the liquid insulin mouth rinse solution will play in the diabetes treatment paradigm in Europe," said Anna Gluskin, CEO of EastGate Biotech. "What is so strategic about this agreement is that it ties it into the groundwork that the company has initiated in the Philippines and Pakistan with respect to scale-up and clinical preparatory steps. Our overall game plan for the global market is growth through licensing and we believe this investment validates our licensing strategy going forward. The International Diabetes Foundation estimates that 66 million people in Europe have diabetes and 41 million people have impaired glucose intolerance. Pharmaceuticals all over the globe understand that there is a real problem with diabetes and we believe that through cooperation and licensing we have the solution."
"It is a pleasure for us to partner with EastGate Biotech and to share this challenge and opportunity," confirmed Nicola Commisso, CEO of the incorporating Nico Innovapharma and of the founding parent company. "We are passionate about innovation and progress, and we really believe that the liquid insulin mouth rinse solution developed by EastGate Biotech will be the basis of a life changing scenario for Type 2 and glucose intolerant patients. We are proud to be part of this revolution."
About EastGate Biotech
EastGate Biotech focuses on innovative technological developments and produces and distributes innovative drug compounds and healthy nutraceuticals that are based on natural therapies absorbed by the body. We utilize advanced nanotechnologies and alternative delivery systems that take difficult to deliver compounds and deliver them using our nanotechnology platform which ultimately increase the bioavailability to the body. Using our methods of delivery, provides healthy alternatives to conventional pharmaceuticals that all-too-often create dangerous side-effects and unexpected consequences for those trying to attain and maintain a healthy lifestyle. EastGate's wholly owned subsidiary Omni Surgery and Anti-Aging Centre is the first of many surgery centers to come under the Omni umbrella as we plan to roll up existing business under the Omni brand and expand our footprint globally.
About Nico Innovapharma
Nico Innovapharma is a new, still under incorporation, Italian innovative start-up conceived on the purpose to develop specifically the cooperation with EastGate Biotech.
The incorporation of Nico Innovapharma and the implementation of the licensing agreement with EastGate Biotech is part of a reorganization's plan--conducted by the founders--of several already existing activities and entities under an umbrella company, Nico Innovagroup. The group will be active in the field of biotech and healthcare, with a focus in the development and research of innovative solutions, also in relation with Nila Medica (www.nilamedica.com), an already established provider of services and products in the healthcare field, and with some other entities operating in the genomics field.
Cautionary statement on forward-looking information
All statements, other than statements of historical fact, contained or incorporated by reference in this news release constitute "forward-looking information" or "forward-looking statements" within the meaning of certain securities laws, including the provisions for "safe harbour" under the United States Private Securities Litigation Reform Act of 1995 and are based on expectations, estimates and projections as of the date of this news release.
The words "anticipates", "plans", "expects", "indicate", "intend", "scheduled", "estimates", "forecasts", "focus", "guidance", "initiative", "model", "methodology", "outlook", "potential", "projected", "pursue", "strategy", "study", "targets", or "believes", or variations of or similar such words and phrases or statements that certain actions, events or results "may", "could", "would", or "should", "might", or "way forward", "will be taken", "will occur" or "will be achieved" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies. The risks, estimates, models and assumptions contained or incorporated by reference in this release, include those identified from time to time in the reports filed by EastGate with the SEC, which should be considered together with any forward-looking statement. EastGate undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Source: EastGate Biotech Corp.