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Ocugen Inc has declared a payment of USD 15 million upfront to Bharat Biotech. Earlier on June 3, Bharat Biotech and Ocugen confirmed that they have entered into an agreement to extend their US pact to include Canadian market in the sale of Covaxin. According to that agreement Ocugen was expected to make an upfront payment and milestone payment to Bharat Biotech upon their first commercial sale in Canada. The Indian Drug maker received this payment for extending the vaccine rights to Canada.
In a regulatory filing, Ocugen also stated that it has agreed to pay another USD 10 million to Bharat Biotech within a month from the commercial launch of Covaxin in North American countries. Through the above agreement they also accepted to co-develop, supply and commercialise Covaxin for the US market.
Ocugen on Monday elaborated, “The amendment is effective as of May 29,2021. In consideration of the expansion, pursuant to the Amendment, the company paid to Bharat (Bharat Biotech) a non refundable, upfront payment of USD 15 million immediately upon execution of the amendment . The company further agreed to pay to Bharat a milestone payment of USD 10 million with 30 days of the first commercial launch of Covaxin in Canada.”
Shankar Musunuri, Co-founder of Ocugen informed that the company that is working towards the submission of the emergency use application in the US, will simultaneously seek authorization under interim order for emergency use in Canada.
Previously it was disclosed that the profit front will remain similar to the US arrangement, 45 percent of the profit acquired through the Covaxin sale in Canada will be retained by Ocugen and the remaining 55 percent will go to Bharat Biotech.
Joint MD of Bharat Biotech, Suchitra Ella informed that the regulatory approvals for Covaxin is in over 60 countries including the US, Brazil, and Hungary while the Emergency Use authorization has been obtained in 13 nations. She further stated through tweet, ” Applications for EUL has been submitted to WHO- Geneva and regulatory approvals are expected by July- September 2021.”