Beyond Air Acquires Full Global Rights To LungFit PH After Settlement With Circassia - Quick Facts

(RTTNews) - Medical device company Beyond Air, Inc. (XAIR) announced Wednesday an agreement with former LungFit PH commercial licensee, Circassia Group plc. Under the terms of the agreement, Beyond Air retains United States and China commercialization rights to LungFit PH in exchange for returning upfront and milestone payments received by the Company in 2019, along with capped future royalty payments. Beyond Air now holds full global rights to LungFit PH.

Beyond Air will repay Circassia the $10.5 million received in 2019 over a two-year period commencing after the LungFit PH receives United States Food and Drug Administration (FDA) approval.

An amount of $2.5 million will be repaid upon FDA approval, $3.5 million one year after FDA approval, and $4.5 million two years after FDA approval.

Additionally, beginning in year three post-approval, Circassia will receive a quarterly royalty payment equal to 5% of LungFit PH net sales in the US. This royalty will terminate once the aggregate payment reaches $6 million.