Meda and Valeant sign collaboration agreement
GÃ–TEBORG, Sweden--(BUSINESS WIRE)--Jun 30, 2011 - Regulatory News:
Meda and Valeant (NYSE: VRX) (TSX: VRX) have entered into a collaboration agreement. Meda has out-licensed exclusive rights for Elidel (pimecrolimus 1% cream) and Xerese (acyclovir and hydrocortisone cream) to Valeant for the U.S., Canada and Mexico. The parties will collaborate on life cycle opportunities for both products.
Meda will receive initial payments of 76 MUSD, whereof about half would be recognized as income over a longer period. Meda will also earn long term double digit royalties on net sales for Zovirax cream and ointment (treatment of cold sores and genital herpes), Xerese, Elidel and their respective product life cycle developments in North America. Until the end of 2012, Meda estimates to receive milestones and royalties totaling approximately 130 MUSD. Thereafter, royalties are due as long as the products are commercialized. During the years 2013-15, royalties will amount to at least 120 MUSD.
Meda and Valeant have done several strategic deals for which both companies have gained valuable synergies; Potiga (retigabine), Meda's acquisition of Valeant's European operations in 2008 and inlicensing of Acnex in Europe.
“Today's deal will maximize the value of the actual products. Valeant has a strong dermatology franchise in North America and can support Elidel and Xerese in the best way. Meda will concentrate the marketing to the respiratory/allergy area with Astepro and our new product Dymista, which is in late registration phase with the FDA. The deal is expected to be accretive to Meda's earnings and margins - both in the short and long term”, says Anders Lönner, CEO of Meda.
MEDA AB (publ) is a leading international specialty pharma company. Meda's products are sold in 120 countries worldwide and the company is represented by its own organizations in 50 countries. The Meda share is listed under Large Cap on the Nasdaq OMX Nordic Stock Exchange in Stockholm. Find out more, visit www.meda.se (http://www.meda.se).
Forward-looking Statements This press release is not an offer to sell or a solicitation to buy shares in Meda. This press release also contains certain forward-looking statements with respect to certain future events and Meda's potential financial performance. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts, and may sometimes include words such as “may”, “will”, “seek”, “anticipate”, “expect”, “estimate”, “intend”, “plan”, “forecast”, “believe” or other words of similar meaning. These forward looking statements reflect the current expectations on future events of the management at the time such statements are made, but are made subject to a number of risks and uncertainties. In the event such risks or uncertainties materialize, Meda's results could be materially affected. The risks and uncertainties include, but are not limited to, risks associated with the inherent uncertainty of pharmaceutical research and product development, manufacturing and commercialization, the impact of competitive products, patents, legal challenges, government regulation and approval, Meda's ability to secure new products for commercialization and/or development and other risks and uncertainties detailed from time to time in Meda AB's interim or annual reports, prospectuses or press releases. Listeners and readers are cautioned that no forward-looking statement is a guarantee of future performance and that actual result could differ materially from those contained in the forward-looking statements. Meda does not intend, nor undertakes, to update any such forward looking statements.
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Posted: June 2011