Item 1.01. Entry into a Material Definitive Agreement.
On March 20, 2020, CNS Pharmaceuticals, Inc. ("Company") entered into a
Development Agreement ("Agreement") with WPD Pharmaceuticals ("WPD"), a company
founded by Dr. Waldemar Priebe, the founder of the Company. Pursuant to the
Agreement, WPD agreed to use its commercially reasonable efforts in good faith
to develop and commercialize certain products that WPD had previously
sublicensed, solely in the field of pharmaceutical drug products for the
treatment of any viral infection in humans, with a goal of eventual approval of
in certain terratories consisting of: Germany, Poland, Estonia, Latvia,
Lithuania, Belarus, Ukraine, Romania, Armenia, Azerbaijan, Georgia, Slovakia,
Czech Republic, Hungary, Uzbekistan, Kazakhstan, Greece, Austria, Russia,
Netherlands, Turkey, Belgium, Switzerland, Sweden, Portugal, Norway, Denmark,
Ireland, Finland, Luxembourg, Iceland.
Pursuant to the Agreenent, the Company agreed to pay WPD the following payments:
(i) an upfront payment of $225,000 to WPD; and (ii) within thirty days of the
verified achievement of the Phase II Milestone, (such verification shall be
conducted by an independent third party mutually acceptable to the parties
hereto), the Company will make a payment of $775,000 to WPD. WPD agreed to pay
the Company a development fee of 50% of the net sales for any products in the
above territories; provided that Poland shall not be included as a territory
after WPD receives marketing approval for a product in one-half of the countries
included in the agreed upon territories or upon the payment by WPD to the
Company of development fees of $1.0 million. The term of the Agreement will
expire on the expiration of the sublicense pursuant to which WPD has originally
sublicensed the products.
The foregoing description of the material terms of the Agreement is not complete
and is qualified in its entirety by reference to the full text thereof, a copy
of which is filed herewith as Exhibit 10.1 to this Current Report on Form 8-K
and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit No. Exhibit Description
10.1 Development Agreement between CNS Pharmaceuticals, Inc. and WPD
Pharmaceuticals
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