U.S.-based 22nd Century Group, which is developing very low nicotine cigarettes, has signed a $7 million research license agreement with British American Tobacco, according to a story by David Robinson for Buffalo News.
The deal, spanning four years, is said to give BAT access to 28 of 22nd Century’s patents and patent applications involving the alteration of the level of nicotine in tobacco plants.
The companies are due work together on research to further develop the technology.
“Licensing our technology to the world’s second-largest tobacco company is a huge milestone for 22nd Century Group,” said Henry Sicignano III, the company’s president.
Under the deal, BAT will pay 22nd Century $7 million upfront, and up to $7 million more during the course of the research agreement if certain milestones are met.
The agreement also gives BAT an option to terminate the research agreement at any time and convert it into a commercial license to produce products based on 22nd Century’s patents and technology. If that happened, the commercial license would run through to at least 2028.
Joseph Pandolfini, 22nd Century’s chief executive officer said the agreement was essentially about the company’s newer technology. “BAT is going to accelerate things with our second-generation technology,” he said.
Category: Breaking News