Innovaderma acquires IP rights to Prolong

Prolong was the world's only medical device cleared by the US Food & Drug Administration for premature ejaculation.

Consideration was £1m, met by the issue of ordinary shares in Innovaderma.

In addition, the group would pay a royalty of £11 per unit to the vendor for each Prolong device sold (no minimum yearly royalty commitment) for the term of Prolong's patent, due to expire in 2031.

"If, during any calendar year, Prolong returns a 20% EBIT of net sales then the sellers will be entitled to a £150,000 bonus payment."

Dr Andy Zamar, who would act as a consultant to the group for the first 12 months post-acquisition, would receive a fee of £4166 a month.

At 12:24 BST, shares in Innovaderma were down 2.15% to 205p each.