Oncologix signs MoU with IUT to sell Oncosphere product

The memorandum contemplates the formulation of a mutually agreed definitive agreement by the parties and its approval by the shareholders of Oncologix. Oncologix will sell to Institut fur Unwelttechnologien or IUT (through a new company to be established by IUT for the development and commercialization of medical products based on radiation) all assets related to the Oncosphere.

An assignment of Oncologix’s technology license from the University of Maryland will be included in those assets. IUT will assume and pay all of the Oncosphere-related liabilities of Oncologix. Oncologix will own 20% of the new company and will be entitled to a 3% royalty on all net sales of that company.

IUT will provide the initial financing for the new company as well as the necessary testing and manufacturing facilities, licenses for engaging in radiation activities and overall management and administrative functions. It is contemplated that IUT will afford the new company favorable prices and terms for its purchases of services and materials from IUT. Oncologix is also expected to receive a cash payment of approximately $50,000.

Ms Judy Lindstrom, Oncologix’s CEO, said: “We are very pleased to be able to participate with IUT and its highly qualified scientists in completing the Oncosphere development and are confident that our future together will prove beneficial for all concerned.”