BioAlliance Pharma joined forces with Amsterdam-based Spepharm in a 50/50 European marketing joint venture based in The Netherlands. The deal was struck to commercialize Loramyc®, a BioAlliance product approved for oropharyngeal candidiasis in France last October. This marketing authorization is the first step of the mutual recognition procedure in the other EU countries.
BioAlliance will receive up to Euro 29.5 million from Spepharm. First, there will be a Euro 5-million investment in equity at trading average of 12.79 euros per share. Then an amount of Euro 24.5 million under license fee payment. The initial payment is made up of Euro 3 million in cash.
The remaining payments of Euro 21.5 million are linked to approvals in two major European countries and sales performance achieved by Loramyc in the territory covered by the joint venture. The territory includes the entire EU, except France, plus two countries outside the EU—Switzerland and Norway.