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LONDON (Alliance News) - Eden Research PLC said Monday it has inked an exclusive licence deal with TerpeneTech Ltd, granting TerpeneTech rights to use its encapsulation technologies and intellectual property for over-the-counter head lice treatments.
TerpeneTech has paid Eden an up-front fee of GBP600,000 and will pay royalties on the sale of products. Additionally Eden has taken a 29.9% stake in TerpeneTech for GBP92,000, through the issue of 4.6 million Eden shares at 20 pence each.
Shares in Eden were down 7.9% at 21.64 pence Monday morning.
"This agreement is significant to Eden in terms of both the licence fee and the market opportunity. We believe that the combination of Eden's patented GO-E encapsulation system with efficacious, low-risk ingredients will provide the differentiator and sustainable competitive advantage required to be successful in this attractive market," said Chief Executive Officer Sean Smith in a statement.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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