NovaDel announces signing of definitive NovaMist agreement
NovaMist is a proprietary system used to deliver a broad range of marketed drugs through the lining of the mouth into the bloodstream. According to NovaDel, NovaMist avoids the need to swallow, increases the bioavailability of drugs by avoiding liver metabolism, allows medication to be taken without water, enhances patient compliance and convenience, reduces dose size and allows for a faster onset of action.
Under the terms of the agreement, Suda, an Australian publicly held pharmaceutical company, will buy NovaDel's patents and trademarks related to NovaMist. The sale does not include NovaDel's ZolpiMist or NitroMist licenses or intellectual property. Subject to shareholder approval, NovaDel will receive $400,000 in cash, 50,000,000 shares of Suda common stock and 10,000,000 for the purchase of Suda common shares at $0.05 per share. NovaDel plans to use the proceeds from the sale to lower its outstanding liabilities.
NovaDel recently appealed to the U.S. Food and Drug Administration to eliminate annual fees related to NitroMist and ZolpiMist, which inhibit the company's ability to find a buyer for the assets.
Suda develops and markets pharmaceutical products, including ArTiMist, a sublingual aerosol and pump formulation of artemisinin derivatives for malaria treatment. The formulation can treat children and young infants who are experiencing malaria or gastrointestinal problems and cannot tolerate tablets. Suda recently completed Phase III trials for the product.