The company recently announced an asset purchase agreement with Lautus Pharmaceuticals whereby it sold its interests and inventory related to Glyderm brand of skin care products. The products are currently manufactured and sold by Biozone, and Lautus purchased the Glyderm trademark, patents, product formulations, the domain names and website, apart from the existing inventory. Lautus is expected to re-launch the product line soon through active promotion. The consideration is $1 million, out of which $600K is payable on closing of the agreement, $200K payable after 6 months and the balance $200K payable after 12 months from the closing date. Lautus will also pay the purchase price for the acquired inventory as and when it is sold to third parties. The two parties also entered into a 5 year supply agreement for manufacture of Glyderm products by Biozone for the Lautus. The price per unit payable by Lautus has also been agreed. The sum received will be used by Biozone to pay a portion of outstanding promissory notes, and for general working capital purposes. The company also settled a long standing dispute with its former Executive Vice President (Fisher). MusclePharm's (MSLP) investment of $2 million in the company is also a positive because it indicates the potential of its proprietary drug delivery QuSome technology. The technology is expected to help MusclePharm enhance the absorption and speed of delivery of MusclePharm's supplements. QuSomes have huge potential and are expected to be in demand from pharma manufacturers after the technology goes through the trials successfully. Dr. Frost's OPKO Health (OPK) is already working on the possibilities. Success of QuSomes will also help Biozone's contract manufacturing business which generates cash flow for the company. Deals with companies like MusclePharm can be a catalyst for interest from other parties if the technology is able to deliver the desired results.