Medical Developments International announced that it has reached in principle agreement to enter into a contract with the Mundipharma network in Europe to take back the distribution rights for its pain relief drug, Penthrox® in all 27 member states in the European Union (EU). The Company said it had already set up a European office and appointed a Head of Europe. The plan is to have a hybrid model selling direct in some countries and using distributors in others. MVP will be able to buy back the EU rights because of a significant reorganisation of Mundipharma's business in Europe. Mundipharma has significantly scaled back its EU staff and presence. As a consequence, MVP will be able to buyback the EU rights for an amount EUR 3 million payable in staged instalments over the period of transition plus a 5% royalty on sales capped at a maximum of EUR 5 million commencing from 1 September when MVP starts booking the sales revenue. To date the emphasis of MVP has been on clinical trials and on expanding its regulatory approvals. The deal with Mundipharma will now add to its focus, driving commercialisation and product innovation in the EU. This deal provides more control over speed to market, in-market presence, pricing, margins and a direct interface with the health care professionals.