DELCATH SYSTEMS, INC. : Termination of a Material Definitive Agreement (form 8-K)

Published: 2021-10-18 16:23:05 ET DCTH

Item 1.02. Termination of a Material Definitive Agreement.

On October 12, 2021, Delcath Systems, Inc. (the "Company") caused its wholly owned subsidiary, Delcath Systems, Ltd., to notify medac GmbH, a privately held, multi-national pharmaceutical company based in Germany ("medac") in writing that it was terminating the License, Supply and Marketing Agreement, dated December 10, 2018 between Delcath Systems, Ltd. and medac (the "Agreement"). The effective date of termination of the Agreement will be April 12, 2022.

As previously disclosed, the Agreement provides to medac the exclusive right to market and sell CHEMOSAT® in all member states of the European Union, Iceland, Norway, Liechtenstein, Switzerland and the United Kingdom. In addition, the Agreement provides to Delcath Systems, Ltd. a combination of upfront and success-based milestone payments as well as a fixed transfer price per unit of CHEMOSAT® and specified royalties.

In April 2021, Delcath Systems, Ltd. issued an invoice for €1 million (which currently converts to approximately US$1.16 million) to medac for a milestone payment due under the Agreement. Payment of this invoice was disputed by medac and, as a result, the Company caused Delcath Systems, Ltd. to exercise its right to deliver to medac a notice of termination of the Agreement.

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