Advanced Medical Solutions Group plc announced the two companies have entered into an out-licensing agreement on a U.S. patent ("Patent") for a collagen-based wound dressing containing Polyhexamethylene Biguanide ("PHMB") ("Licensed Product"). Under the terms of the agreement, Organogenesis has been granted an exclusive license in the United States to the Patent. In exchange for this, AMS will receive a minimum payment of $2.5 million, which will be recognized in 2017, and a minimum royalty revenue of $1 million for each of the financial years ending 31 December 2018 and 2019, as part of an ongoing royalty that will be payable to AMS on the net sales of the Licensed Product for the life of the Patent. The Patent is due to expire in October 2026.