The Sage Group Client Delcath Announces Commercial Licensing Agreement for CHEMOSAT®

The Sage Group Client Delcath Announces Commercial Licensing Agreement for CHEMOSAT® 7 Year Agreement with medac to Maximize Potential of CHEMOSAT in Europe

7 Year Agreement with medac to Maximize Potential of CHEMOSAT in Europe

Upfront and Milestone Payments Provide Additional Resources to Advance Clinical Development in the U.S.

NEW YORK (December 20, 2018) – Delcath Systems, Inc. (OTCQB: DCTH), an interventional oncology company focused on the treatment of primary and metastatic liver cancers, announces that the company has entered into a definitive licensing agreement for CHEMOSAT® commercialization in Europe with medac Gesellschaft für klinische Spezialpräparate mbH (medac), a privately held, multi-national pharmaceutical company based in Hamburg area, Germany. Founded in 1970, medac specializes in the treatment and diagnosis of oncological, urological and autoimmune diseases. The company has offices globally, worldwide partner agreements in over 90 countries, and approximately 1,200 employees.

Under the terms of the seven-year agreement, Delcath’s European subsidiary, Delcath Systems, Ltd. exclusively licenses medac to sell and market CHEMOSAT in all member states of the European Union, Norway, Liechtenstein, Switzerland, and the United Kingdom. medac will pay Delcath €6,000,000 in a combination of upfront and success-based milestone payments. Additionally, Delcath will receive a fixed transfer price per unit of CHEMOSAT as well as royalties. The agreement has a projected value of up to $45 million over the first seven-year term and includes an optional five-year extension.

“With offices throughout Europe and a well-established network among oncology key opinion leaders, medac is a well-suited partner to help advance CHEMOSAT commercialization in the European Union and neighboring countries,” said Jennifer K. Simpson, Ph.D., MSN, CRNP President and CEO of Delcath. “medac provides the organizational scale, expertise and market reach necessary to help us strive to firmly establish CHEMOSAT in the European treatment landscape for cancers of the liver. Additionally, through this agreement, we obtain immediate resources to support our efforts to advance our clinical development program. This is a highly significant development for Delcath, and we are pleased to be working with a market leader like medac to help this therapy fully realize its potential.”

Heiner Will, Chief Marketing Officer of medac, said “We are excited to build upon the growing customer and revenue base that Delcath has built in Europe to pro