Financial Times doesn't know UCB Pharma? Hmmm!
Vernalis to see Frovatriptan launched in US
By Patrick Jenkins
Published: March 29 2002 18:40 | Last Updated: March 29 2002 18:43
Vernalis, the biotechnology company, is finally to see its migraine drug, Frovatriptan, launched in the US, following an agreement between Elan, which holds distribution rights for the product, and a new co-marketing partner.
Vernalis shares rose 5.5 per cent to 151½ on Thursday, while Elan was up 10p at 920p, following the deal with UCB Pharma, a little-known Belgian-owned company.
Regulatory approval for the product was received last November, and the market had been impatient for a co-marketing partner to be signed up.
But Vernalis had to accept short-term constraints in the sales revenue in order to secure the deal. In exchange for an earlier-than-expected milestone payment of $5m-$10m, it has given up more than 5 percentage points of royalty on ongoing sales to take only 15 per cent for the next three years.
Elan has also cancelled a $10m loan, plus accrued interest of $1m, which the Irish company had granted Vernalis during development of drug in December 2000.
Peter Worrall, finance director, said: "The economics have to work for all three partners. We have tried to give Elan and UCB as much incentive as possible to sell this product."
The drug, to be marketed as Frova in the US, will be launched by June. The co-promotion agreement will last for seven years.
An estimated 27m people in the US suffer migraines. Triptan-type drugs, which have been specifically developed over the past decade to treat migraines, generated US sales of $1.4bn last year. Analysts expect Frova to achieve peak-year sales in six to seven years of around $150m.
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