Allergan obtained the exclusive right to market, sell, and distribute some of Ivivi’s products in the aesthetic and bariatric medical procedure markets on a worldwide basis. Under the agreement, Ivivi will receive $1.5 million plus additional royalty-based fees.
Ivivi is entitled to an initial payment and milestone payments upon initiation of commercial sales of the products in the U.S. and Europe. Of the $1.5 million, $500,000 is payable within five days of the agreement signing. Ivivi will also receive a specified price per unit and royalty payments.
Ivivi will manufacture and supply Inamed, a wholly owned subsidiary of Allergan, with the products under an eight-year contract beginning with the first commercial sale. Inamed may extend the term for two years without further payment and may extend the term for up to eight years by paying an extension fee.