DOYLESTOWN, Pa. The Quigley Corp. and Phosphagenics Limited on Tuesday announced the formation of a joint venture, to be called Phusion Labs, to develop nonprescription remedies.
The new products will be powered by Phosphagenics’ proprietary, patented TPM technology, a delivery technology that increases the amount and depth of penetration of active molecules into the skin, the companies stated.
“Phosphagenics’ ... technology lends itself perfectly to delivery of OTC drugs, as the inclusion of TPM will increase the absorption and efficacy of many OTC active ingredients,” stated Quigley CEO Ted Karkus. “Our signature product Cold-Eeze has built its reputation and robust distribution network on its uniquely effective delivery system. We see the world-class scientific research team at Phosphagenics as the perfect partner to help us leverage our existing network and consumer product expertise.”
Under the terms of the agreement, Quigley and Phosphagenics each will own 50% of Phusion Labs. Quigley will make a one-time payment to Phosphagenics of $1 million and the issuance to Phosphagenics of 1.4 million shares of Quigley common stock.
Additionally, Quigley has contributed $500,000 of initial capital and committed up to $2 million toward the initial development and marketing costs of new products for Phusion Labs. Quigley will oversee distribution, sales and marketing of the new products.