Aerogen agrees deal with Philips

A Galway-based medical devices company that allows patients breathe in their medicines has agreed a “significant” licensing agreement with healthcare giant Philips.

The details of the deal have not been released but Philips will pay an upfront fee as well as ongoing royalty payments.

The licensing deal will see Philips manufacture Aerogen’s homecare nebuliser technology transfer over to Philips, while the company will concentrate on products for the hospital market.

Aerogen CEO John Power said that the challenge of developing the homecare market would have been tough. Mr Power said that Philips will now partner with drug companies to develop a product with both medicine and drug deliver unit.

“They’ll do all the work in the homecare market and we will receive on-going royalties if the drugs become successful,” he said.

The new deal will result in 20 jobs in Galway as Aerogen take on staff to work with Philips in delivering key technologies. The jobs will be in research and development and bring the total workforce to 80. The company has recorded growth of about 30% a year since Mr Power led a management buy-out in 2007.