Deerfield Management will invest $30 million in Vivus to help the company further its erectile dysfunction drug avanafil. The treatment is a fast-acting, highly selective, phosphodiesterase type 5 inhibitor (PDE5i) and is in a Phase III study.
Deerfield will provide $20 million under a royalty and funding agreement in the first 18 months. Deerfield will receive a royalty on sales of Muse, Vivus' marketed ED treatment, and avanafil if approved. Deerfield will also tender $10 million from the sale of Vivus’ common stock.
“The market for ED therapies continues to grow. In 2007, sales of all PDE5i’s exceeded $3 billion, an increase of 15% over the previous year,” according to Leland Wilson, president and CEO of Vivus.