Deal covers drug for Dupuytren’s and Peyronie’s diseases and calls for $410 million in milestones.
Pfizer obtained European rights to Auxilium Pharmaceuticals’ drug for Dupuytren’s disease and Peyronie’s disease for $75 million upfront. Pfizer agreed to pay $410 million in milestone fees. Of these, $150 million are tied to regulatory achievements and $260 million are based on sales goals.
Auxilium’s stock went up almost 22% in early morning trading. The company opened trading at $27.88.
A Phase III trial of Xiaflex in Dupuytren’s disease showed positive results. Auxilium thus expects to file a BLA in early 2009. The drug is also in a Phase II study in Peyronie’s disease.
Pfizer will be responsible for marketing Xiaflex for both Dupuytren’s disease and Peyronie’s disease in the 27 member countries of the EU and 19 other European and Eurasian countries. In addition, Pfizer will be primarily responsible for regulatory activities in these countries.
BioSpecifics Technologies, Auxilium Pharmaceuticals’ partner, will receive $6.375 million of the upfront payment and 8.5% of the $410 million in milestone payments. BioSpecifics reports that these payments will sustain the firm through the first half of 2012.