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OBI takes step back from cosmetics as it licences skin care product to Valor

12-Feb-2013

Skin care maker Oxygen Biotherapeutics (OBI) has entered into a License and Supply Agreement with the Cosmetics Division of Switzerland-based Valor SA for its Dermacyte products; limiting its focus on the cosmetics market.

Dermocyte is a perfluorocarbon-based cosmetic product currently manufactured and distributed by Oxygen Biotherapeutics itself.

However, per the new agreement, the Lausanne-headquartered company has been granted the exclusive right to sell, import, export, distribute, package, label and otherwise commercialize Dermacyte.

Valor also is authorized to sublicense the license granted under this agreement provided that such sublicenses are consistent with the terms of the original licensing agreement.

“We believe this licensing agreement is a big step forward in the reorganization process that our company has undertaken over the last year and a half,” said Michael Jebsen, president and Chief Financial Officer of OBI.

Taking a step back

The move comes after OBI decided to take a step back from the cosmetics arena and focus its technology towards drug development.

“We have returned to our roots as a drug development company creating our perfluorocarbon-based drug, Oxycyte, for traumatic brain injury, stroke and decompression sickness,” continued Jebsen.

OBI is currently working to resume its TBI trials in Israel and Switzerland; and collaborating with Aurum Biosciences to develop better MRI diagnostics for stroke patients; as well as continuing to provide Oxycyte to the U.S. Navy through a material transfer agreement, which is conducting preclinical studies using Oxycyte for decompression sickness.

“In addition, we continue to make significant progress in our domestic preclinical study program designed to further establish the safety profile of Oxycyte,” added Jebsen. “We believe that program remains on track for completion in June with reports being written this summer.”

Per the terms of the agreement, Valor must pay OBI an annual, non-refundable license fee as well as a royalty on all sales of Dermacyte when a specific agreed upon sales goal is achieved.