Quotient Limited (QTNT) this month came signing a binding letter of intent with Ortho Clinical Diagnostics (Ortho) to resolve certain issues and disputes.
Both the companies announced signing of the LoI in second week of this month saying their former distribution agreement and related contract now stand terminated. All disputes between the both companies upon former distribution agreement are also resolved. The LoI also ends the arbitration process between the companies which is still pending. Through this companies have also established a new distributor relationship solely around patient transfusion diagnostics.
As per new agreement, Quotient will develop its trademarked MosaiQ immunohematology microarray to be effectively used in the patient transfusion market. The company will then sell the microarrays as well as instruments and consumables to Ortho. The microarrays will then be distributed in Europe and the United States by Ortho.
The agreement also entitles Quotient to receive payments of totaling up to $67.5 million, besides receiving payment for the sold products. The company received its first milestone payment of $7.5 million on September 4, 2020. The remaining milestones payments are subject to fulfilling certain commercial sales and regulatory targets.
Ortho hold exclusivity for a ten-year term to distribute IH microarray in the patient transfusion markets in the Europe and the United States. That exclusivity will remain until the company will remain fulfilling certain minimum purchase requirements.
Under the new agreement, Quotient will use its MosaiQ technology outside of patient transfusion diagnostics with Ortho having no right on those applications. The rights of marketing, distributing and selling the IH microarray to be used in testing blood donors will remain with Quotient.
Quotient is excited to have Ortho leveraging its leading commercial capabilities in the transfusion diagnostics sector to sell MosaiQ to patient segment customers, said Quotient’s Chief Executive Officer, Granz Walt.