DOW JONES NEWSWIRES
Swedish pharmaceutical company Medivir AB (MVIR-B.SK) said
Wednesday it has renegotiated the terms of its commercial
partnership with Meda AB (MEDA-A.SK) for its cold sore (herpes
labialis) product Xerese and will get $45 million for product
rights in North America and Mexico.
MAIN FACTS:
-Under the terms of the renegotiated agreement, Medivir will now
receive a $45 million payment from Meda in return for the transfer
of all rights to the product in U.S., Canada and Mexico.
-This agreement will trigger a payment to AstraZeneca PLC (AZN),
the patent originator, according to agreed terms.
-The amended agreement also provides Meda with the exclusive
U.S. 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 $10 million development
milestone if the product is approved by the U.S. Food and Drug
Administration.
-Medivir will also receive single digit royalties on sales in
the U.S. and full commercial rights outside U.S.
-Medivir will pay Meda a single digit royalty on these
sales.
-Other agreements that Medivir has for Xerclear with
GlaxSmithKline PLC (GSK), Daewoong Pharmaceuticals Co. Ltd
(069620.SE) and Luxemburg Pharmaceutical will remain unchanged by
the transaction with Meda for North America.
-Ron Long, CEO of Medivir, says: "We are following the
performance of Xerese with great interest since the U.S. 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."
-Xerese is FDA-approved and available in the U.S. as a
prescription medicine. Meda launched the product in the U.S. in
Feb. 2011 and Medivir currently receives a double digit royalty on
Meda's sales in this market.
-Shares closed Tuesday at SEK129.75.
-By Dominic Chopping; Dow Jones Newswires; +46-8-5451-3093;
dominic.chopping@dowjones.com