Imugene licenses poultry productivity product to Merial

Sydney animal-health biotech Imugene (ASX:IMU) has finalised an exclusive sub-license agreement granting international livestock health company and Merck-Aventis subsidiary Merial the global rights to develop and sell Imugene's poultry productivity enhancing product.

"The sub-license completes this major stage in our commercialisation strategy for this poultry product," said Imugene managing director Warwick Lamb in a statement. "We believe Merial is the best company to take this product to market. They have experienced product development teams, sophisticated sales, marketing and distribution networks and an enviable international presence."

Trials of Imugene's poultry productivity enhancer have demonstrated growth gains of 13.7 per cent with 11.7 per cent improvement in food conversion ratio. These weight gains exceed the current industry best practice by up to 15.8 per cent.

Imugene will earn milestone payments throughout the product development process followed by royalty payments received on product sales following successful commercialisation. The agreement also includes mutually agreed minimum performance requirements and timelines. Imugene retains the rights to all other products utilising the Fowl Adenoviral Delivery Vector platform technology.