The sale, which is in line with Consegna's strategy to purchase, package and profit, marks he first asset sale for Consegna.
Importantly, the acquisition capitalises on the oral modified release drug delivery market valued at $49 billion in 2009, which has been estimated to double by 2016 according to a GBI Research Report.
Under the deal, Consegna sold 100% of the issued share capital Lingual Consegna Pty Ltd, which holds the Linguet™ technology, to Perth-based Imugene in exchange for 1 million shares.
Fabio Pannuti, chief executive officer, commented: "We are delighted t conclude this transaction for Linguet™.
"This enables a dedicated scientific team to turn Linguet™ into a near term cash flow generating asset by focusing on product based commercial solutions.
"The successful commericalisation of Linguet™ through Imugene will be good for Consegna shareholders, as it is our intention at an appropriate time in the near future, to distribute in specie the Imugene shares on a pro rata basis to them."
As part of the agreement Consegna was given a position on Imugene's Board. Pannuti was appointed chairman, replacing Graham Dowland who stepped down.
The Linguet™ Technology Platform
Linguet™ is a tablet which can be placed under the tongue or the buccal cavity (cheek) and allowed to dissolve, which releases the active drug which is absorbed immediately into the blood stream through the mucosa of the month.
This method allows the drug to bypass the gastrointestinal tract and is able to reach its target more rapidly and in the process significantly lower side effects.
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