Under the terms of the Agreements, Applied DNA grants Colorcon exclusive worldwide right to use the Company’s molecular tags and associated authentication technologies in film coatings for solid oral dosage form (“SOD”) applications, and non-exclusive rights to use the Company’s technologies in inks and colorants for SOD applications.
Pursuant to the Agreements, Applied DNA will supply taggant and authentication materials in exchange for long-term royalties on the sale of Colorcon products. Further, the first of two milestone payments is payable to Applied DNA with the signing of the Agreements. Second milestone payment will be received upon initial approval by a regulatory authority.
The Agreements will expire on the later of October 1, 2032 or the last expiration date of any patent licensed pursuant to the Agreements.
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