Amended deal also gives Meda rights to develop Xerese against genital herpes.
Swedish firm Meda is paying Medivir $45 million as part of a renegotiated marketing deal for the latter’s FDA-approved prescription cold sore therapy, Xerese™. Meda negotiated a license to market Xerese in the U.S., Canada, and Mexico back in February 2010, and launched the product in the U.S. in February this year, where it is available as a prescription treatment. Under terms of the original deal with Meda, Medivir earns a double-digit royalty on sales of the drug by Meda. The renegotiated agreement has essentially transferred all rights to the product to Meda in its designated territories, in return for the $45 million payment to Medivir and the waiver of royalty fees. The amendment will in addition trigger a payment to AstraZeneca, the patent originator, under agreed terms; Sweden-based Medivir was founded in 1988 as a spinout from AstraZeneca’s antiviral research unit.
The new deal in addition gives Meda exclusive rights to develop Xerese for the genital herpes indication in the U.S. If approved, Medivir would receive a $10 million milestone payment, and single digit royalties on U.S. sales. Meda will be responsible for developing the drug for the genital herpes indication.
The amendments to the Meda deal will have no impact on Medivir’s existing agreements for Xerclear™ (Xerese’s tradename in Europe) with GlaxoSmithKline, Daewoong Pharmaceuticals, and Luxemburg Pharmaceuticals. The firm says the cash earned from Meda will be used to progress its infectious disease R&D projects.
Daewoong Pharmaceutical negotiated an exclusive license to distribute Xerclear in China and Hong Kong earlier this month. Under terms of the deal, Daewoong will be responsible for conducting clinical studies required for regulatory approvals and for marketing, sales, and distribution of the drug. In return, Medivir will receive royalties on all product sales. Daewoong had previously inked a deal for Xerclear in South Korea and recently filed for registration of the drug with the South Korean authorities.