UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington,
D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT
TO SECTION 13 OR 15(D)
OF
THE SECURITIES EXCHANGE ACT OF 1934
Date
of Report (Date of Earliest Event Reported): June
9, 2008
BIOSPECIFICS TECHNOLOGIES
CORP.
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(Exact
name of registrant as specified in its
charter)
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Delaware
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0-19879
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11-3054851
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(State
or Other Jurisdiction
of
Incorporation)
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(Commission
File Number)
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(IRS
Employer
Identification
No.)
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35 Wilbur Street
Lynbrook, NY
11563
(Address
of Principal Executive Office) (Zip Code)
516.593.7000
(Registrant's
telephone number, including area code)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[
] Written communications pursuant to Rule 425 under the Securities Act (17
CFR.425)
[
] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[
] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[
] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-4(c))
Introductory
Comment
Throughout
this Current Report on Form 8-K, the terms “we,” “us,” “our” and “Company” refer
to BioSpecifics Technologies Corp.
ITEM
8.01 OTHER
Royalties
to be Paid to the Company by Auxilium
The
Company has confirmed that Auxilium Pharmaceuticals, Inc. (“Auxilium”) will pay
a low double digit royalty on a percentage of worldwide net sales of
XIAFLEXTM. The
low double digit royalty is payable on sales of XIAFLEXTM for any
clinical indication, worldwide and at a flat rate. The royalty is
payable at the same flat rate regardless of whether Auxilium sublicenses the
product to another company. Auxilium is obligated to pay the royalty
on a country by country basis until the later of: (1) the last to expire valid
claim of a patent covering such products, (2) the expiration of the regulatory
period conveyed by Orphan Drug Designation or (3) June 3, 2016.
Mark
up on COGS
In
addition to the royalty payments payable by Auxilium, the Company will receive a
certain percentage mark up on the cost of goods for product that is manufactured
by Auxilium.
Royalty
Payment Obligations to a Third Party
In
consideration of the license granted to the Company under the Dupuytren’s
License Agreement, dated as of November 23, 2007, between the Company and the
Research Foundation of the State University of New York at Stony Brook (the
“Research Foundation”), the Company will pay to the Research Foundation a
royalty of 0.5% on net sales of XIAFLEXTM for the
treatment and prevention of Dupuytren’s disease. The Company is
obligated to pay the royalty on a country by country basis until the later of:
(1) the last to expire valid claim of a patent covering such products, (2) the
expiration of the regulatory period conveyed by Orphan Drug Designation or (3)
June 3, 2016. We are not aware of any royalty obligations to other
third parties in respect of Dupuytren’s disease.
SIGNATURES
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Pursuant
to the requirements of the Securities Exchange Act of 1934, each
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
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Date:
June 9, 2008
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BIOSPECIFICS
TECHNOLOGIES CORP.
——————————————————
(Registrant)
/s/
Thomas L. Wegman
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——————————————————
Thomas
L. Wegman
President
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