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Consegna Group Terminates Call Option On Linguet IP

Consegna Group (ASX: CGP) has decided to terminate a call option held by OzPharma over the company's wholly owned subsidiary Lingual Consegna.

Under an agreement struck with OzPharma last year, Consegna must now issue OzPharma 25 million Consegna shares to satisfy the termination of the call option.

Consegna shares were last trading at around A$0.028, valuing the share issue at $700,000.

In 2011, Consegna acquired the drug delivery technology Linguet™ from OzPharma, and as part of the deal entered into a call option agreement over Lingual Consegna, which was formed to hold the Linguet™ technology.

Consegna acquired the technology for an initial cash consideration of $50,000 plus the issue of 1.37 million shares upon the achievement of certain milestones.

The termination of the call option means OzPharma no longer has the right to acquire the subsidiary.

Fabio Pannuti, Consegna managing director, said, "Over the period we have had Linguet™ in our stable, much has been accomplished to realise the future value of the asset.

"This step affirms Consegna's ongoing rights to the Linguet™ IP to facilitate any future transactional step for this emerging technology that may occur."

Linguet™ is a tablet or lozenge formulation technology that releases an active drug ingredient in the mouth and which facilitates absorption through the oral mucosa.

The oral modified release drug delivery market was valued at $49 billion in 2009 and is estimated to double by 2016.

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