Yesterday, pharmaceutical companies Labropharm and Paladin Labs made the announcement that they are expanding their current relationship with several licensing and distribution deals, wherein Paladin will distribute two of Labropharm’s products.
Firstly, Paladin has been granted the right to market and sell INTELLILAB-based twice-daily oxycondone-acetaminophen in Canada, subject to Labropharm’s co-promote right in the country. Both companies will collaborate on a development of the product, with both companies contributing to funding development as it relates to meeting Canadian regulatory approval.
Paladin also has the right of first opportunity in Canada on a second INTELLILAB-based pain medication for Canadian distribution. This would be a boon, since according to IMS Canada, the oxycondone-acetominophen market in Canada is valued at over $32 million annually.
Under the terms of the second and third deals, Labropharm has granted Paladin the right to market INTELLILAB products in certain Sub-Saharan African countries. Paladin will cover all the costs related to development and regulation in this instance. Under all three agreements, Labropharm will receive a transfer price on product supply based on a percentage of the anticipated selling price, as well as having the ability to receive $7.2 million between the three agreements, relating to passing specific regulatory approval and sales milestones.
Paladin will advance Labropharm $10 million against a supply of TRIDURAL, a Canadian once-daily tramadol medication, for distribution in Canada. Labopharm will repay the cash advance through partial credits against future product supplied to Paladin. The cash advance will bear interest at a rate of 16% per annum and matures on May 1, 2012.
“Paladin has played a key role in the success of TRIDURAL(TM), our once-daily tramadol product in Canada, and we are pleased to expand our commercial relationship with licensing and distribution agreements for two additional products, including the first such agreement for a product based on our INTELLITAB(TM) technology platform for the development of misuse-deterrent and tamper-resistant formulations of existing medications,” said James R. Howard-Tripp, President and Chief Executive Officer, Labopharm Inc.
“The commercial success of TRIDURAL(TM), which holds the number one market position in the extended release tramadol market in Canada, has elevated the strategic importance of pain as a therapeutic focus area for Paladin,” said Jonathan Ross Goodman, President and Chief Executive Officer, Paladin Labs Inc. “We are pleased to broaden and strengthen our collaboration with an existing commercial partner across multiple geographies and products in order to augment our pain portfolio. The agreement marks the first multi-territorial license agreement since our Pharmaplan investment in South Africa. This is significant because it signals our ability to leverage Paladin’s existing commercial relationships to the benefit of our South African operation.”
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