Forbes Medi-Tech Inc. has signed a Strategic Alliance and exclusive Master License Agreement with Novartis Consumer Health AG regarding Forbes' plant-based sterol composition FCP (Phytrol), a potential functional food ingredient for lowering cholesterol.
Under the agreement, Novartis will have exclusive worldwide rights to use or sub-license Phytrol for use in functional foods, dietary supplements and over-the-counter products. Forbes will receive upfront payment, royalties and milestone payments. Forbes will be responsible for ingredient research and manufacturing in its collaboration with Novartis. Novartis will be responsible for clinical trials, regulatory approvals and commercialization of products.
The agreement is for a term of five years, with a provision for successive two-year renewal periods. The agreement contains clauses whereby either party can terminate the agreement upon the occurrence of certain events. Further business or financial terms were not disclosed.
Novartis Consumer Health AG is a division of Novartis SA, a leader in Life Sciences with core business in Healthcare, Agribusiness and Nutrition.
Forbes Medi-Tech Inc. is a Vancouver-based biotechnology company dedicated to research, development and commercialization of pharmaceutical and nutraceutical products.