DUSA to End Marketing Deal With Stiefel
WILMINGTON, Mass., Sept. 30, 2010 - DUSA Pharmaceuticals today filed a report with the SEC saying it gave notice to GlaxoSmithKline company Stiefel Laboratories, ending its Latin America marketing, distribution and supply agreement with Steifel. The agreement covered skin drug the Levulan Kerastick. An excerpt from the filng is below. The full filing can be found here.
On September 30, 2010, DUSA Pharmaceuticals, Inc. (“DUSA”) gave notice to Stiefel Laboratories, Inc. (“Stiefel”), a GSK company, terminating the parties’ Marketing, Distribution and Supply Agreement, dated January 12, 2006, as amended, as of September 26, 2007 (the “Agreement”).
The termination of the Agreement, which had appointed Stiefel as DUSA’s exclusive marketing and distribution partner for DUSA’s product, the Levulan® Kerastick® (the “Product”), in Latin America, is expected to result in the acceleration of the recognition of deferred revenues for drug shipments made, which were $101,000 as of June 30, 2010, as well as the remaining unamortized balance of milestone payments received, which were $490,000 as of June 30, 2010.
Revenues recognized under the agreement in Latin America represented 1% of DUSA’s overall revenues for the first half of 2010.
The parties are in discussions to ensure an orderly transition of the responsibilities for the Product in order to maintain regulatory compliance.
Except for historical information, this report contains certain forward-looking statements that involve known and unknown risk and uncertainties, which may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the statements made. These forward-looking statements relate to recognition of deferred revenues and unamortized milestone payments. These forward-looking statements are further qualified by important factors that could cause actual results to differ materially from future results, performance or achievements expressed or implied by those in the forward-looking statements made in this release. These factors include, without limitation, actions of regulatory authorities, changes in accounting rules, actions of third-parties, and other risks and uncertainties identified in DUSA’s Form 10-K for the year ended December 31, 2009 and other SEC filings from time to time.
Posted: October 2010