DOYLESTOWN, Pa., Feb. 24 /PRNewswire-FirstCall/ -- The Quigley Corporation (Nasdaq: QGLY) www.quigleyco.com, today announced that it has signed a license with assignment of ownership agreement for its patented formulation QR-340 developed by its wholly owned subsidiary, Quigley Pharma Inc. The compound has been clinically tested and shown to improve the appearance of scars in a comparative study. The Agreement is with Levlad, LLC/Natures Gate, www.natures-gate.com, a manufacturer and marketer of personal care products based on botanicals.
The general terms of the agreement allow the assignee to further refine, develop and commercialize the product with exclusivity and eventual full ownership of the patent within five years, beginning January 2009. The agreement is based on required royalty payments totaling $1.1 million to The Quigley Corporation over the time period. Under the terms of the agreement, if the minimum payments and terms are not met within the five year period, Quigley retains full rights and ownership of the property. However, Levlad can continue to pay per unit royalties beyond five years for a non-exclusive license.
The cosmetic and skin care market is not a focus of The Quigley Corporation. The patented QR-340 formulation had demonstrated potential consumer benefits in a double blind clinical trial, (Press Release, April 18, 2005, http://www.quigleyco.com/news/nr/041805.php), and a decision was made to realize a return on the investment in the technology through a sale of the asset to a successful company that had an established presence, identity and proven success in cosmetics and skin care. Quigley Pharma research has demonstrated that this compound showed an improvement in the visual appearance of scars in a comparative study versus a category leading OTC national brand name scar cream.
Dr Richard Rosenbloom MD, PhD, Exec VP, and COO of Quigley Pharma stated: "It is gratifying to see one of our patented and positively tested formulations come closer to benefiting the consumer and providing a return on our investment."
About The Quigley Corporation
The Quigley Corporation (Nasdaq: QGLY, http://www.Quigleyco.com) is a diversified natural health medical science company. Its Cold Remedy segment is a leading marketer and manufacturer of the COLD-EEZE(R) lozenges, clinically proven to cut the common cold nearly in half. COLD-EEZE customers include leading national wholesalers and distributors, as well as independent and chain food, drug and mass merchandise stores and pharmacies. The Quigley Corporation has wholly owned subsidiaries; Quigley Manufacturing Inc. consists of two FDA approved facilities to manufacture COLD- EEZE(R) lozenges as well as fulfill other contract manufacturing opportunities and Quigley Pharma Inc. (http://www.QuigleyPharma.com) conducts research in order to develop and commercialize a pipeline of patented botanical and naturally derived potential prescription drugs.
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risk, uncertainties and other factors that may cause the Company's actual performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statement. Factors that impact such forward-looking statements include, among others, changes in worldwide general economic conditions, changes in interest rates, government regulations, and worldwide competition.
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|SOURCE Quigley Corporation|
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