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Note 6 - License, Sublicense, Manufacturing, Research and Supply Agreements
12 Months Ended
Dec. 31, 2015
License Sublicense Manufacturing Research And Supply Agreements [Abstract]  
License Sublicense Manufacturing Research And Supply Agreements [Text Block]

6. License, Sublicense, Manufacturing, Research and Supply Agreements


Manufacturing and Supply Agreements:


Hayashibara Biochemical Laboratories, Inc. (“HBL”) ceased to produce natural human interferon in December of 2012. Historically, the research and development was conducted by ABI using this unique form of natural human interferon supplied by HBL. Their departure from the Interferon market left ABI without a current source of interferon with which to conduct clinical trials and ultimately commercialize a product. Additionally, this interferon no longer provides a competitive edge insomuch as the industry as a whole is rapidly moving toward the use of recombinant interferon rather than natural human interferon. The Company is exploring its options and is talking with alternate suppliers of interferon.


ABI’s thirty years of data has been generated from the numerous studies performed using natural human interferon. Since human interferon is virtually impossible to obtain, those studies will have to be repeated using recombinant interferon. Repeating the studies will be both costly and time consuming. While the pharmaceutical industry is creating and marketing new and effective anti-viral medications, ABI believes that there is still sufficient time to develop and commercialize low dose interferon for treatment of such diseases as Influenza, Chronic Cough in COPD, Hepatitis B, C, and D, and Thrombocytopenia caused by other diseases and as a side effect of treatment of other diseases.


Strategic Alliance with CytoPharm


On May 15, 2013, the Company entered into a CIT Patents Agreement with CytoPharm, Inc. (“CP”) a former licensee for oral IFN technology in Taiwan and China. This agreement establishes the ownership, inventorship, prosecution, maintenance, use and commercialization of a patent regarding treatment of thrombocytopenia with oral IFN that developed out of a study conducted by CP under a previous License and Supply Agreement.


Strategic Alliance with Intas Pharmaceuticals


On January 7, 2010, the Company entered into a License and Supply Agreement with Intas Pharmaceuticals Ltd., an India-based pharmaceutical company with three decades of experience in the healthcare industry and a global presence in 42 countries worldwide. Given the problems associated with the natural human interferon supply, it is likely that the agreement with Intas will be terminated as the Company can no longer supply them with natural human IFN produced by Hayashibara. Once the problems associated with the interferon supply are solved, the Company will most likely endeavor to enter into another such agreement with Intas Pharmaceuticals.


License and Sublicense Agreements:


The Company holds patent rights for which the Company has paid certain license fees under a license agreement with Texas A&M University System. Under this agreement, the Company will pay the licensor a portion of any sublicense fee received by the Company with respect to the manufacturing, use or sale of a licensed product, as well as a royalty fee based on the net selling price of licensed products, subject to a minimum annual royalty.


There were no sublicense fees due to HBL for 2014 or 2015.


The Company has also entered into various sublicense agreements under which the Company is entitled to receive royalties based on the net sales value of licensed products. However, given the termination of the Development Agreement with HBL, some of these sublicense agreements have been canceled, and it is likely that the rest will be terminated in the near future.


Research Agreements:


The Company currently has no ongoing studies so there are no obligations to pay third parties in 2015 for expenses related to clinical studies.