By Kyle Morris

 

Shares in Circassia Group PLC rose Wednesday after it said that it is entitled to receive payments of $10.5 million following Beyond Air Inc.'s confirmation that it had received approval from the Food and Drug Administration for its LungFit PH device for the treatment of hypoxic respiratory failure in newborn children.

Shares at 1027 GMT were up 3.00 pence, or 9.1%, at 35.90 pence.

The U.K. medical-device company said, thanks to an agreement with Beyond Air, it is entitled to receive $2.5 million within 60 days of approval, $3.5 million within 60 days of the first anniversary of approval, and $4.5 million within 60 days of the second anniversary of approval. Furthermore, Circassia is entitled to a royalty of 5% of net sales of the device, starting on the second anniversary of approval, up to a maximum of $6 million, it said.

 

Write to Kyle Morris at kyle.morris@dowjones.com

 

(END) Dow Jones Newswires

June 29, 2022 06:44 ET (10:44 GMT)

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