RIVER EDGE, N.J.—Nephros, Inc. and Bellco S.r.l., an Italy-based supplier of hemodialysis and intensive care products, announced June 27 that they have entered into a license agreement for mid-dilution dialysis filters.
That agreement, which is effective July 1, grants Bellco exclusive rights to market Nephros' patented mid-dilution dialysis filters in Canada and certain European countries.
"Bellco is currently Nephros' distribution partner in several European countries and has been a strong supporter of the mid-dilution product," said Dr. Paul Mieyal, acting CEO of Nephros. "Nephros is proud to broaden its relationship with Bellco while generating near-term capital to support sales efforts for our DSU product line and our efforts to obtain FDA approval of our hemodiafiltration system in the United States. We believe this license agreement will allow Bellco to leverage its sales and marketing expertise to increase sales of the mid-dilution technology in the licensed territories."
Nephros is a medical device company developing and marketing filtration products for therapeutic applications, infection control, and water purification.
"We are excited to solidify our relationship with Nephros through this agreement," said Stefano Rimondi, CEO of Bellco. "The mid-dilution dialyzer is an important product for patients with end-stage renal disease, and Bellco looks forward to the opportunity to manufacture and market this innovative product under its own label. This license agreement will contribute to enhance Bellco's consolidation and growth strategies in the licensed territories. Furthermore, it confirms Bellco as the company offering the widest choice of hemodiafiltration (HDF) therapies in the world.”
Under the terms of the agreement, Nephros will provide an exclusive license to Bellco for its mid-dilution technology for Canada, Italy, France, Spain, and Belgium for the period July 1, 2011, to Dec. 31, 2016. Bellco will also receive certain additional non-exclusive distribution rights during the license period in the United Kingdom and Greece and, upon Bellco's request, elsewhere in Europe where Nephros is not then selling the mid-dilution technology, and, upon Bellco's request and Nephros' approval, in other markets. In exchange for the license, Bellco will pay to Nephros euro 1.85 million (approximately $2.6 million) in three installments:
In addition, for the period January 1, 2015 until December 31, 2016, Bellco will pay to Nephros a royalty of euro 4.50 per unit up to 103,000 units and euro 4.00 per unit above 103,000 units sold per year.
