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updated 00:50, Tue September 11, 2007

BioDelivery Sciences Buys U.S. Rights for BEMA Technology From QLT for $7 Million

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MORRISVILLE, N.C. (AP) -- BioDelivery Sciences International Inc. said Monday it exercised an option to buy the U.S. rights to a drug-delivery technology from QLT Inc.'s U.S. subsidiary for $7 million.

At the same time, BioDelivery Sciences entered into a $30 million license and supply agreement with Meda AB to commercialize a Fentanyl product using the technology in North America. That deal is subject to antitrust review.

Under the terms of the rights deal, BioDelivery Sciences will pay QLT USA Inc. $3 million upfront for the rights to the BEMA dissolvable disk delivery system, plus two later payments of $2 million apiece based on certain performance milestones. QLT USA is a division of Vancouver-based QLT.

BioDelivery Sciences already owns the non-U.S. rights to the BEMA technology, according to the company's Web site. The system is made up of a dissolvable dime-sized polymer disc that patients place inside their cheek.

BioDelivery Sciences paid for the initial payment to QLT using a short-term bank note, which it plans to repay with part of its anticipated payment from Meda in October.

Shares of BioDelivery Sciences fell 4 cents to $3.95.

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