Jubilant Lifesciences to market Technegas in the US

It further said: "DraxImage will assist CYC with the development and financing of the phase III clinical trials for Technegas, and any other steps required to file for and obtain USFDA approval."

Commenting on the agreement, Jubilant Life Sciences Chairman Shyam S Bhartia and CoChairman and Managing Director Hari S Bhartia said: "We are pleased to partner with CYC for the clinical development and potential US market introduction of Technegas. This partnership reiterates our commitment to add innovative products in our Radiopharmaceuticals portfolio and will leverage our existing strengths in the nuclear imaging business."

The company said DraxImage will provide at risk up to $4.5 million to fund the USFDA clinical trial currently under development with any additional costs to be funded by both parties equally.

"Upon successful completion of the USFDA trial, DraxImage will be able to convert USFDA trial costs into CYC common stock up to a maximum of 15 per cent of the total CYC shareholding," it said.

"DraxImage will pay CYC a 17.5 per cent royalty on sale in addition to an agreed margin above the cost of goods sold," it added.

At present, Technegas is being sold in 55 countries including EU, Japan and Canada by CYC.