WEST PHARMACEUTICAL SERVICES, INC. (NYSE:WST) Files An 8-K Entry into a Material Definitive Agreement

ME Staff 8-k
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WEST PHARMACEUTICAL SERVICES, INC. (NYSE:WST) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry Into a Material Definitive Agreement.

West Pharmaceutical Services, Inc. (the “Company”) and Daikyo Seiko, Ltd. (“Daikyo”) have entered into an Amended and Restated Technology Exchange and Crosslicense Agreement and two Distributorship Agreements effective January 18, 2017. The Company maintains a 25% ownership interest in Daikyo.
The agreements maintain a relationship between the two companies that has existed since a cross license agreement was signed in 1973. They also continue on substantially similar terms cross license and distributorship agreements signed in 2007, which were due to expire on January 25, 2017. Licenses that were granted under the 2007 cross license agreement continue according to their terms.
Under the cross license agreement, each party has agreed to share with the other its know-how and other non-patented technical information relating to, and to cooperate in the joint development of, closures, vials, cartridges, syringes, medical device components and similar products used in connection with the containment and delivery of injectable drug products. Each party has also agreed to license its know-how, patents and trademarks in the manufacture, use and sale of those products.
One of the distributorship agreements provides for the distribution of Daikyo products referred to above by the Company in all countries other than Japan and certain other identified countries in Asia. The other distributorship agreement, which is identical in material terms and conditions, provides for the distribution of Company products in Japan by Daikyo.
As similar to the prior agreements, each of the agreements is non-exclusive and the cross license agreement is royalty-free except to the extent otherwise agreed.
Each of the agreements has a 10-year term. The cross license agreement may be terminated before its term expires under a variety of circumstances, including by Daikyo after the Company ceases to be a shareholder of Daikyo and by either party in the event of a change in control of the other party. In the event of termination, the parties have agreed to negotiate the terms under which they may continue to use the know-how and trademarks and to make, use or sell licensed products.

About WEST PHARMACEUTICAL SERVICES, INC. (NYSE:WST)

West Pharmaceutical Services, Inc. (West) is a manufacturer of components and systems for the packaging and delivery of injectable drugs, as well as delivery system components for the pharmaceutical, healthcare and consumer products industries. The Company’s segments include Pharmaceutical Packaging Systems segment (Packaging Systems) and the Pharmaceutical Delivery Systems segment (Delivery Systems). Its Packaging Systems segment includes primary packaging components and systems for injectable drug delivery, other components used in syringe, intravenous and blood collection systems, and prefillable syringe components. Its Delivery Systems segment includes safety and administration systems, multi-component systems for drug containment and administration and various custom contract-manufacturing solutions.

WEST PHARMACEUTICAL SERVICES, INC. (NYSE:WST) Recent Trading Information

WEST PHARMACEUTICAL SERVICES, INC. (NYSE:WST) closed its last trading session up +1.60 at 86.63 with 458,293 shares trading hands.