Published on June 29, 2011 at 3:36 AM
Medivir AB (STO:MVIR), the emerging research-based specialty pharmaceutical company focused on infectious diseases, today announced that it has renegotiated the terms of its commercial partnership with Meda (OMX: MEDA A) for Xerese™, its unique marketed product for cold sores (herpes labialis). Xerese™ is FDA-approved and available in the US as a prescription medicine. Meda launched the product in the US in February 2011 and Medivir currently receives a double digit royalty on Meda's sales in this market.
Under the terms of the renegotiated agreement, Medivir will now receive a USD 45 million payment from Meda in return for the transfer of all rights to the product in US, Canada and Mexico. This agreement will trigger a payment to AstraZeneca, the patent originator, according to agreed terms.
The amended agreement also provides Meda with the exclusive US rights to Xerese™ for the genital herpes indication. Meda is responsible for the development of this indication for which Medivir will be eligible to receive a USD 10 million development milestone if the product is approved by the US Food and Drug Administration. Medivir will also receive single digit royalties on sales in the US and full commercial rights outside US. Medivir will pay Meda a single digit royalty on these sales.
Other agreements that Medivir has for Xerclear with GSK, Daewoong Pharmaceuticals and Luxemburg Pharmaceutical will remain unchanged by the transaction with Meda for North America.
Ron Long, CEO of Medivir, commented: "We are following the performance of Xerese™ with great interest since the US launch by our partner Meda in February. However both we and Meda recognize that it will take time and require considerable marketing resources to achieve successful penetration of this important market. The revised agreement fairly reflects our view of the market potential and provides us with cash proceeds that we can devote both to our R&D projects in the infectious disease area and to other product in licensing opportunities to take advantage of the commercial platform acquired through the acquisition of Biophausia"
Medivir and Meda's collaboration on Xerese™ dates back to February 2010 when Medivir licensed the rights to market, sell and distribute Xerese™ to Meda in the US, Canada and Mexico.