Ocugen, Inc. (NASDAQ: OCGN) has signed a binding term sheet with Roots Pharmaceutical and its strategic partner Al-Dhow International Holding to negotiate an exclusive license agreement for OCU400, its modifier gene therapy for Retinitis Pigmentosa, in the Middle East and North Africa region.

Under the terms outlined in the agreement, Ocugen would receive upfront license fees and near-term development milestone payments totaling up to $4 million. The company would also be eligible for cumulative sales milestone payments of up to $255 million, along with a 22% royalty on net sales generated by its partner. Ocugen would manufacture and supply OCU400 under a related supply agreement.

The definitive license and supply agreement is expected to be executed within 90 days. Additional terms will be disclosed once that agreement is finalized.

Ocugen continues to advance OCU400 through its Phase 3 liMeliGhT clinical trial, with a topline readout expected in the first quarter of 2027, to be followed by a Biologics License Application submission.

The information in this article is based on a press release issued by Ocugen.