Elan, UCB Pharma to co-promote migraine drug Frova in the US
AFX (UK); Mar 28, 2002
LONDON (AFX) - Elan Corporation PLC and UCB Pharma Inc, the US affiliate of Belgium based pharmaceutical and chemical group UCB SA, said they have entered into an agreement to co-promote the new migraine drug frova in the US.
Elan and UCB will launch frova in the second quarter of 2002.
The deal will also have a knock on effect on Vernalis Group PLC.
In a separate statement Vernalis said following the agreement with Elan and UCB, Vernalis has restructured its loan deal with Elan and will be entitled to royalties.
Under the deal, UCB will co-promote frova with Elan to neurologists using their combined sales forces of 265 field personnel.
UCB will also promote frova with its primary care sales force of approximately 475 field representatives.
The co-promotion between the companies covers a seven-year period.
The financial terms of the transaction were not disclosed.
Both companies are obligated to provide defined selling and promotional support for the product, and will jointly develop marketing strategies for FROVA.
In a separate statement Vernalis Group PLC said following the deal it has restructured its loan agreement with Elan.
Under the revised commercial terms, Vernalis will no longer have to repay the principle and interest on the loan.
Elan will also bring forward a milestone payment due to Vernalis under the licence agreement.
In return, Vernalis will receive royalties at a reduced rate on US sales up to a pre-determined level during the launch phase and early years of marketing of Frova.
At the end of an initial three-year period, Elan will have an option to extend the reduced royalty period by making an additional lump sum payment to Vernalis.
Thereafter, the royalty rate due to Vernalis will revert to the previous levels.
Robert Mansfield, Chief Executive Officer of Vernalis said: "We believe this will enable our marketing partners to gain increased market share, which would have a significant long-term benefit for Vernalis.
"The loan waiver from Elan will also improve our cashflow and financial results for 2002." |
