Item 1.01. Entry into a Material Definitive Agreement.
On May 26, 2021, Beyond Air, Inc. (the "Company") entered into a settlement
agreement (the "Settlement Agreement") with Circassia Group plc ("Circassia"), a
former LungFit® PH commercial licensee. Under the terms of the Settlement
Agreement, the Company retains United States and China commercialization rights
to LungFit® PH in exchange for returning $10.5 million in upfront and milestone
payments received by the Company in 2019, over a two-year period commencing
after the LungFit® PH receives United States Food and Drug Administration
approval. Beginning in year three post-approval, Circassia will receive a
quarterly royalty payment equal to 5% of LungFit® net sales in the United
States, which will terminate once the aggregate payment reaches $6.0 million.
The Company now holds full global rights to LungFit® PH.
The foregoing summary of the Settlement Agreement is qualified in its entirety
by reference to the text of such agreement, which the Company expects to file as
an exhibit to the Company's Quarterly Report on Form 10-Q for the quarterly
period ending June 30, 2021.
© Edgar Online, source Glimpses