Medivir AB (OMX: MVIR), the research-based specialty pharmaceutical company focused on infectious diseases, announces that its unique cold sore product Xerclear®, which Medivir developed in-house, is now being launched for over-the-counter (OTC) use by its partner GlaxoSmithKline (GSK) in Europe. Xerclear® will be marketed under the trade name Zoviduo and Zovirax Duo in Europe.
In June 2010, Medivir entered an agreement with GSK, which granted GSK exclusive rights to market and distribute Xerclear® for non-prescription (OTC) sales in several markets, including Europe, Russia, Japan, India, Australia and New Zealand.
GSK has now kicked off the first wave of launches in the five countries where Zoviduo/Zovirax Duo is approved for OTC sales: Denmark, Czech Republic, Slovakia, Portugal and Poland. The launches will take place during the spring, beginning in February. GSK's goal is to launch the product in the remaining markets in Europe as the respective regulatory authorities grant approval for OTC sales.
Maris Hartmanis, CEO of Medivir commented, "Few companies of our size have experienced the launch of a product, developed in-house, that is now being introduced in Europe and has also been available in the US since last spring. This strengthens Medivir in our efforts to develop new drugs and is yet another step toward our goal of becoming profitable."
GSK is responsible for funding commercial development of Xerclear®, including marketing approval for OTC sales in all territories covered by the agreement. In addition to funding commercial development of Xerclear®, GSK will pay Medivir up to double-digit royalties on sales for the exclusive rights. The remaining Euro 1.9 million in milestones, according to the agreement, will be due for payment at the time of future OTC product launches in certain pre-defined countries.