Tampa, FL, January 03, 2019 --(PR.com
)-- HedgePath LLC (HP LLC), the founder of HedgePath Pharmaceuticals (HPPI), announced today that it has retained a Delaware law firm to assist in an investigation into the circumstances surrounding the “Updated Collaboration and Funding Agreement” announced on Dec. 17, 2018 between HPPI and its majority owner Mayne Pharma Ventures Pty Ltd, an affiliate of Mayne Pharma Group Limited. HP LLC believes that the economic terms are atypical and substantially below market, and it is seeking information about why the revised Supply and License Agreement (SLA) provides for only a 9% royalty on net sales and no upfront and regulatory milestone payments to HPPI as well as no one time annual sales milestone payments. HP LLC believes that an at-market commercial license for a branded, patent-protected orphan drug with seven years of statutory market exclusivity and that uniquely addresses the chronic needs of a hereditary cancer syndrome like Basal Cell Carcinoma Nevus Syndrome (BCCNS or Gorlin’s syndrome) would provide a substantial upfront payment, a portion of which might be tied to additional regulatory milestones, a significantly greater royalty, and additional significant payments tied to one-time sales milestones.
The majority, controlling shareholder has a commercial sales force focused on branded dermatology products in the USA. In its public investor presentations, the majority, controlling shareholder has projected sales for this orphan indication of $300M per year which would more than double current sales for its dermatology division. As majority shareholder, it appoints all directors, its support is necessary for senior management’s employment and compensation, and it has controlled the drug development program.