Innovus Pharmaceuticals Inc (OTCMKTS:INNV)‘s stock zoomed during the previous day after it reported about the exclusive license and distribution agreement reached with Elis Pharmaceuticals, Ltd. The terms of the agreement imply that Elis will get the special grant of the license to market the company’s products across Turkey and other African and Gulf countries.

Significant agreement

The agreement provides for a payment of up to $35.5 million to Innovus Pharmaceuticals Inc (OTCMKTS:INNV) against the sales milestone payments as well as transfer price. During the press release, the company’s President and CEO, Bassam Damaj, stated that the agreement marks a major commercial collaboration of the company with Elis. He added that the type of products to be marketed by Elis have seen high demand in those countries, which makes him confident about the sales.

Ninth commercial agreement

The company’s partnership with Elis is its ninth commercial agreement so far. Innovus Pharmaceuticals Inc (OTCMKTS:INNV) is looking forward to forging more such agreements with an objective to expand the sale of its products to 40 additional countries. Damaj said that the agreement with Elis will help its products reach to more than 60 countries, which implies accomplishment of the target in excess of 50% within six months of 2015.

Meanwhile, Reuven Rubinson, Vice President of Finance of the company applauded the company’s effort to sign nine commercial partnerships and to reach out to nearly 60 countries. He shared that such partnerships translate into $480 million worth of sales alongside double-digit royalties or transfer price. Some of the products that Elis will market includes Zestra(R), EjectDelay(R), Vesele(R), Zestra Glide(R) and Sensum+(R). All of these products are currently commercialized in the U.S. and are expected to launch in the markets of Canada and the U.K. as well.

The news resulted in a spike in the share price of Innovus Pharmaceuticals Inc (OTCMKTS:INNV), which closed 16.58% higher at $0.140 yesterday. The stock further extended its gains during the after hours to $0.155 as 44,200 shares traded hands.