Nexstim Plc to license technology to US-based medical technology company Magnus Medical, Inc. for the treatment of neuropsychiatric disorders
Nexstim Plc (NXTMH:HEX, NXTMS:STO) (“Nexstim” or “Company”) announces it has signed an agreement to license technology it has developed to Magnus Medical, Inc. (“Magnus Medical”), a US-based medical technology company.
The technology to be licensed is related to the NBT® system developed by the Company, with certain restrictions, and the related patents, and the use of the license is restricted to the treatment of neuropsychiatric disorders. Nexstim e-field modelling and application software are not included in the license.
The estimated total value of the license agreement is approximately USD 19 million (approximately EUR 17 million). The financial structure of the license agreement consists of an upfront payment of approximately USD 4 million (approximately EUR 3.5 million) and, based on Magnus Medical’s projected revenue, technology royalties of approximately USD 15 million (approximately EUR 13 million) for the agreed period of royalty not exceeding 5 years, starting from the commercialization of the technology. The estimated total royalty payments are based on Magnus Medical’s business plan which specifies that royalty payments will start within 3 years. According to the agreement, minimum royalty payments amount to approximately USD 1.2 million (approximately EUR 1.0 million) to be paid during the first three royalty years. The license will survive the termination of the agreement with the above restrictions on the scope. The Company estimates it will recognize the license agreement single payment of approximately EUR 3.5 million as revenue in the financial year 2022.
During the period of royalty, Nexstim is subject to certain competitive constraints concerning the sale of NBT®-based systems in the United…