Baxter International Inc. (NYSE:BAX) and JW Holdings today announced that they have entered into an exclusive distribution and license agreement for parenteral nutritional products containing a novel formulation of omega 3 lipids. With this collaboration, Baxter will complement its leading global parenteral nutrition portfolio, and provide global commercial capabilities and clinical development.
Under the terms of the agreement, Baxter will have exclusive rights to co-develop and distribute the products globally, with the exception of Korea. The arrangement includes a $25 million up-front payment that will be recorded as a special pre-tax in-process research and development charge in the third quarter of 2013. Additionally, the agreement calls for payments totaling up to $10 million for the achievement of regulatory milestones, along with royalties on future product sales.
The agreement remains in effect for 10 years following the first product launch outside of Korea. The companies will share equally in the development costs and global clinical trials and registrations. JW Holdings will manufacture the products in its Dangjin, Korea facility. Additionally, Baxter has specified rights to certain additional nutritional products that JW Holdings may develop or produce in the future.
"Lipids are an important part of nutrition therapy, particularly for those patients who rely on parenteral feeding for sole-source or supplemental nutrition," said Robert M. Davis, president of Baxter's Medical Products business. "Baxter's collaboration with JW Holdings allows us to complement our existing parenteral nutrition product portfolio and provide clinicians with additional options to meet patients' unique nutritional needs."
"The agreement with Baxter expands our ability to help more patients benefit from parenteral nutritional products containing our novel formulation of omega 3 lipids," said Gu Seo Park, chief operating officer of JW Holdings. "Both companies are bringing unique technology and expertise to this collaboration, which also will create new opportunities for JW Holdings to grow and gain recognition globally."
Baxter International Inc.