The TSX Venture Exchange has accepted for filing documentation relating to an asset purchase agreement dated June 24, 2024, among Medicure International Inc. (wholly owned subsidiary of the company) and a non-arm's-length party. Pursuant to the agreement, Medicure International acquired all the assets that relate to the business of developing pyridoxal 5'-phosphate analogues (P5P analogues), the processes for preparation, compositions containing P5P analogues and methods of medical treatment containing P5P analogues from the vendor.

As consideration, Medicure International paid the vendor a $100,000 cash payment upon closing. Medicure International, upon meeting certain milestones related to the P5P analogues, shall pay future cash payments to the vendor of: (i) $500,000 upon filing its first investigational new drug application; (ii) $250,000 upon filing its first new drug application; and (iii) $500,000 upon receiving U.S. Food and Drug Administration (FDA) approval.

In addition, Medicure International shall pay to the vendor 10 per cent of net proceeds received from any third party not affiliated to Medicure International with respect to any transactions relating to the assets, including, but not limited to: (i) the sale or transfer of all or substantially all of the assets to a third party purchaser; (ii) any licence to develop, commercialize, use, offer for sale, sell, import, export or exploit P5P analogues, up to a maximum value payable to the vendor of $20-million; and (iii) the sale of a U.S. FDA priority review voucher obtained in connection with the development of P5P analogues.

In the event, the company retains a contract research organization to provide services related to the development of the P5P analogues, the vendor will be entitled to tender a bid for such services and the opportunity to match quotes provided by third party organizations.

In the event that the company does not file a first investigational new drug application within seven years from closing, related to the P5P analogues (first of the milestones), the vendor has the option at any time after such date to repurchase the assets from Medicure International, at a price equal to the aggregate of all expenses incurred by Medicure International in connection with the development of P5P analogues (but not exceeding $6.5-million (U.S.)), subject to prior exchange acceptance.

For further details, please refer to the company's news releases dated June 24, 2024, and Aug. 14, 2024.