PharmaDerm, the branded dermatology business of Novartis’ Sandoz unit, will market the Anacor Pharmaceuticals antifungal drug Kerydin™ (tavaborole) topical solution, 5% in the U.S., in a deal that could net Anacor more than $110 million.
The deal, disclosed today by Anacor, comes nearly two weeks after Anacor won FDA approval of its NDA for Kerydin, the first oxaborole antifungal approved for the topical treatment of onychomycosis of the toenails, a fungal infection of the nail and nail bed.
Under a distribution and commercialization agreement signed by the two companies Anacor agreed to supply at cost, through its contract manufacturers, Kerydin to Sandoz, which will be responsible for all selling, marketing, distribution, general and administrative costs related to the drug. Anacor will hold the NDA, and will oversee any further development of Kerydin.
In return, Sandoz agreed to pay Anacor $40 million upfront, an additional milestone payment of $25 million expected to be paid in January 2015, and a minimum of $45 million in long-term profit-sharing payments in 2016. Anacor will also receive profit-sharing payments from Sandoz once it accrues its first $50 million of gross profits.
Anacor will also have the option to repurchase all rights in Kerydin from Sandoz three years after the drug is launched or as of December 31, 2017, whichever is later, at a price to be determined.
“PharmaDerm’s dedication to branded prescription products to treat dermatological and podiatric diseases makes it an ideal collaborator to launch Kerydin,” Anacor CEO Paul Berns said in a statement. “In addition, PharmaDerm has an experienced sales force which will be able to reach the specialty physicians who treat large numbers of patients with onychomycosis.”
Anacor’s lead product candidate is AN2728, an investigational anti-inflammatory PDE-4 inhibitor in development for the potential treatment of mild-to-moderate atopic dermatitis. The company is also developing three compounds on its own—including AN2718, a backup compound to Kerydin—and has licensed three other investigational drugs to partners.
The three licensed drugs include a tuberculosis candidate to GlaxoSmithKline; an animal health drug to Eli Lilly; and a human African trypanosomiasis (HAT, or sleeping sickness) compound to Drugs for Neglected Diseases (DNDi), an independent, non-profit drug R&D organization that is developing new treatments for neglected diseases.