LEXINGTON, Mass., April 16, 2020 /PRNewswire/ -- Pulmatrix, Inc. (NASDAQ: PULM) a clinical stage biopharmaceutical company developing innovative inhaled therapies to address serious pulmonary diseases today announced it has entered into a Collaboration and License Agreement with Sensory Cloud, Inc., a privately held company, led by David Edwards PhD, which specializes in the delivery of aerosolized products for over-the-counter (OTC) healthcare and wellbeing. Under the terms of the Agreement, the Company has granted Sensory Cloud an exclusive, worldwide, royalty bearing license to PUR 003 and PUR 006 (NasoCalm), the Company's proprietary salt formulations for aerosol nasal administration. The Licensed Products include OTC nasal delivery to potentially reduce the pathogenic risk and transmissibility of contagions, including with respect to COVID-19.

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Under the terms of the agreement, Pulmatrix will out-license intellectual property of NasoCalm to Sensory Cloud for worldwide distribution, commercialization and marketing with escalating royalties of 7% in 2020, 14% in 2021 and 17% over the remaining life of the agreement. Pulmatrix has the right to terminate the Agreement in the event that Sensory Cloud has failed, within six months after April 9, 2020, to meet certain milestones related to the rapid development and commercialization of the nasal prophylactic and anti-contagion product. In addition, Pulmatrix shall be entitled to receive a milestone payment of $1,000,000 following the achievement of aggregate net sales of all Licensed Products of $20,000,000.

"Pulmatrix roots were as a biodefense company and we were eager to leverage our experience and NasoCalm to help combat the rapidly emerging COVID-19 global pandemic. Years ago we developed NasoCalm as a potential anti-infective biodefense medical countermeasure product," said Ted Raad, Chief Executive Officer of Pulmatrix. "With results that show reduced viral progression and contagion in animal models, and demonstrated reductions of contagious bioaerosols and safety in humans, we believe NasoCalm may be a tool to manage the spread of COVID-19. We look forward to partnering with Dr. Edwards and Sensory Cloud to seek rapid delivery of an Emergency Response Product to those most at risk of infection."

David Edwards, PhD, CEO of Sensory Cloud and internationally-recognized inventor and aerosol scientist, said, "As the COVID-19 pandemic continues to evolve, there is an urgent need for practical, easy to administer and widely available interventions to prevent the spread of disease. We are encouraged by the data for Pulmatrix's NasoCalm, and believe Sensory Cloud's unique platform for personal olfaction will provide an effective, affordable and fast-to-market way for bringing NasoCalm to healthcare workers and others on the front lines as we battle this unprecedented challenge. Importantly, NasoCalm's demonstrated safety should enable future over-the-counter options to the broader population, with potential to mitigate the effects of this devastating pandemic."

The companies are preparing for peer-reviewed publication of a scientific article where the principal data and use of the NasoCalm-based antiviral and anti-contagion will be presented.

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