Medical company Neovasc Inc (NASDAQ:NVCN) (TSX:NVCN) on Friday reported a collaboration and licensing agreement with Penn Medicine and the Gorman Cardiovascular Research Group's (together, Penn) technology to further advance Neovasc's Tiara programme for the transcatheter treatment of mitral valve disease.

The technology and know how was developed by Penn Medicine and the Gorman Cardiovascular Research Group at the University of Pennsylvania. This agreement does not impact either Penn or Neovasc's patent rights.

Tiara is Neovasc's minimally invasive transcatheter device for patients who experience severe mitral regurgitation (MR). Tiara is implanted in the heart using a minimally invasive, transapical transcatheter approach without the need for open-heart surgery or use of a cardiac bypass machine.

This collaboration and licensing agreement contemplates a period of collaboration over the next four years, with fees being paid by Neovasc to Penn.

Upon the first commercial sale of the Tiara, Neovasc will pay a stepped royalty on Tiara revenues and will continue after the four-year collaboration period has ended.

In addition, the collaboration and licensing agreement allows Neovasc, or an acquirer of Neovasc or the Tiara assets, to buy-out these royalty obligations.