Firm will finance BLA approval and marketing.
Akorn and Serum Institute of India will jointly commercialize four of Serum’s vaccines in the U.S.—measles, mumps, and rubella; human diploid rabies; recombinant hepatitis B; and oncology bladder cancer. Under the agreement, Serum will manufacture the vaccines and grant Akorn exclusive marketing rights for the vaccines in the U.S. for ten years following BLA approval.
Akorn will pay Serum a marketing rights fee for each of the vaccine products that it decides to conduct clinical trials against. It will also provide funding for the trials necessary to secure BLA approval for the vaccines. Akorn may decide not to fund the trials for any vaccine if it finds that the cost are prohibitive, but upon doing so, the exclusive right granted by Serum to Akorn for that vaccine will lapse.
Net revenues will be split equally between Akorn and Serum, with Serum bearing all manufacturing costs and Akorn bearing all marketing costs. Additionally, Serum will increase its equity position in Akorn.