Meda Outlicenses Elidel and Xerese to Valeant for $76M Up Front

Meda outlicensed the dermatology products Elidel (pimecrolimus 1% cream) and Xerese™ (acyclovir and hydrocortisone cream) to Valeant for the U.S., Canadian, and Mexican markets, for $76 million up front. The deal follows just 24 hours after Meda confirmed renegotiating the terms of its own license to Xerese from Medivir in the same three territories, in a deal through which Medivir received $45 million in return for waiving its rights to royalty fees.

As part of the new deal with Valeant, Meda will receive a series of milestones and royalties totaling an estimated $130 million over the next 18 months, in addition to its $76 million up-front fee.  The firm will also receive long-term running double-digit royalties on net sales of the topical atopic dermatitis treatment Elidel, and the cold sore creams Xerese and Zovirax® (the GlaxoSmithKline acyclovir trademark which Valeant uses under license), including minimum royalties of $120 million during the 2013-2015 period. Valeant has exclusive rights to Zovirax in the U.S. and Canada.

Meda inked a deal to acquire Elidel from Novartis for $420 million in April. At that time the firm announced it was also negotiating a deal to outlicense Elidel to Valeant. Elidel is approved and sold in more than 90 countries worldwide, and achieves annual sales of about $120 million.