Includes Milestone Payments. Long-Term Licensing Royalties to be Paid
to Applied DNA Following Sales.
STONY BROOK, N.Y. -- (Business Wire)
Applied
DNA Sciences, Inc., (NASDAQ: APDN) (“Applied DNA” or the “Company,”)
has signed a License and Cooperation Agreement and a related Supply
Agreement (collectively known as the “Agreements”), effective March 31,
2018, with Colorcon,
Inc. (“Colorcon”) for the use of Applied DNA’s SigNature®
molecular tags in Colorcon’s product offerings and access to the
Company’s associated authentication technologies. These Agreements
follow the memorandum of understanding (MOU) announced on December 18,
2017.
Under the terms of the Agreements, Applied DNA grants Colorcon exclusive
worldwide right to use the Company’s molecular tags and associated
authentication technologies in film coatings for solid oral dosage form
(“SOD”) applications, for which Colorcon is the largest global supplier,
and non-exclusive rights to use the Company’s technologies in inks and
colorants for SOD applications. Pursuant to the Agreements, Applied DNA
will supply taggant and authentication materials to Colorcon in exchange
for long-term royalties on the sale of Colorcon products incorporating
the Company’s molecular tags and on the sale of authentication services
related thereto. Further, the first of two milestone payments is payable
to Applied DNA with the signing of the Agreements. The Company will
receive the second milestone payment upon initial approval by a
regulatory authority for application in a SOD pharmaceutical or
nutraceutical product application. The Agreements generally expire on
the later of October 1, 2032 or the last expiration date of any patent
licensed pursuant to the Agreements.
“With the signing of these definitive agreements and Colorcon’s
industry-leading role, we demonstrate our continuing ability to monetize
our DNA molecular taggant platform and associated services to drive
revenue growth. The seamless solution integrating our molecular tag with
Colorcon's film coatings puts us on a path to adoption by Colorcon’s
current and prospective pharmaceutical customers,” stated Dr. James
Hayward, President and CEO of Applied DNA. Dr. Hayward added that:
“Molecular tags will provide traceability for audits and law enforcement
and, perhaps most importantly, forensic confirmation of the authenticity
of the drug product to the patient and all those in the supply chain,
including the pharmacist, the drug distributors and manufacturers. We
are gratified to be working with a world leader whose sales channel
greatly amplifies our combined access to the market.”
“Our teams are already actively engaged in discussions with potential
customers,” stated Kelly Boyer, General Manager Film Coatings Business
Unit for Colorcon, Inc.
Ms. Boyer continued, “Colorcon has an established reputation for
innovation and service. Applied DNA’s SigNature molecular tags and
authentication technologies provide value-addition at a time when
regulators are demanding that the industry implement serialization in
order to track packaging. The collaboration goes a significant step
further by enabling traceability at the level of single unit, solid oral
doses, and it is complementary to the provisions of the Drug
Supply Chain Security Act.”
Colorcon has team members with extensive experience in global regulatory
compliance, while Applied DNA has the benefit of several of its
management team with experience in the pharmaceutical industry, and the
Company has already scaled to supply large, global commercial
ecosystems. Applied DNA’s Molecular Tags have been included in over 200
million pounds of cotton, over 15 million pounds of synthetic fibers,
and over 800,000 microcircuits for the Department of Defense. The
Company’s data portals, supporting hundreds of thousands of data
transactions per day, have stored over 300,000 sample testing reports,
and are now exchanging data with multiple third-party platforms.
About Colorcon®
Colorcon is a world leader in the development, supply and technical
support of formulated film coating systems, modified release
technologies, and functional excipients for the pharmaceutical industry.
Colorcon’s best-in-class products and technologies are complemented by
Colorcon’s extensive application data and value-added services to
support all phases of solid oral dose design and development. Colorcon’s
focus on market issues and technology development has earned Colorcon an
international reputation as a pharmaceutical supplier of choice. That
reputation is based on the superior product quality, unparalleled
technical support, extensive regulatory assistance and reliable supply
from multiple locations.
About Applied DNA Sciences
Applied DNA is a provider of molecular technologies that enable supply
chain security, anti-counterfeiting and anti-theft technology, product
genotyping and DNA mass production for diagnostics, personalized
medicine and therapeutics.
Applied DNA makes life real and safe by providing innovative,
molecular-based technology solutions and services that can help protect
products, brands, entire supply chains, and intellectual property of
companies, governments and consumers from theft, counterfeiting, fraud
and diversion. The proprietary DNA-based "CertainT®" platform can be
used to identify, tag, test, and track products, to help assure
authenticity, origin, traceability, sustainability and quality of
products.
SigNature® DNA describes the core technology ingredient that is at the
heart of a family of uncopiable, security and authentication solutions,
targeted a wide range of industries, including but not limited to,
pharmaceuticals and nutraceuticals, textiles and defense materials ,
BackTrac® and DNAnet®, for anti-theft and loss prevention, and
digitalDNA®, providing powerful track-and-trace. Our products provide a
forensic chain of evidence in large commercial ecosystems
Visit adnas.com for
more information. Follow us on Twitter and LinkedIn.
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Forward-Looking Statements
The statements made by Applied DNA in this press release may be
“forward-looking” in nature within the meaning of the Private Securities
Litigation Act of 1995. Forward-looking statements describe Applied
DNA’s future plans, projections, strategies and expectations, and are
based on assumptions and involve a number of risks and uncertainties,
many of which are beyond the control of Applied DNA. Actual results
could differ materially from those projected due to our lack of
significant revenues, limited financial resources, limited market
acceptance, history of net losses, market competition, risk of not
obtaining regulatory approval and various other factors detailed from
time to time in Applied DNA’s SEC reports and filings, including our
Annual Report on Form 10-K filed on December 28, 2017 and our subsequent
quarterly report on Form 10-Q filed on February 8, 2018, which are
available at www.sec.gov.
Applied DNA undertakes no obligation to update publicly any
forward-looking statements to reflect new information, events or
circumstances after the date hereof to reflect the occurrence of
unanticipated events, unless otherwise required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180405005252/en/
Contacts:
Investors:
LHA Investor Relations
Sanjay M. Hurry,
212-838-3777
shurry@lhai.com
or
Media:
DGI
Comm
Cheryl Schneider, 212-825-3210
cschneider@dgicomm.com
or
Program:
Applied
DNA Sciences, Inc.
James A. Hayward, 631-240-8800
Chief
Executive Officer
james.hayward@adnas.com
web: www.adnas.com
twitter:
@APDN
Source: Applied DNA Sciences, Inc.
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