Santarus Announces Co-Promotion Agreement for Fleet Phospho-soda EZ-Prep System
Monday August 27, 4:00 am ET
SAN DIEGO--(BUSINESS WIRE)--Santarus, Inc. (NASDAQ:SNTS - News), a specialty pharmaceutical company, today announced that it has entered into a one-year co-promotion agreement with C.B. Fleet Company, Incorporated, a privately held healthcare and personal products company, relating to the Fleet® Phospho-soda® EZ-Prep(TM) Bowel Cleansing System, a complete system for simple, effective bowel preparation. Bowel cleansing products are generally used prior to a medical procedure or examination, such as a colonoscopy. Gastroenterologists and their medical professional staff provide direction to patients concerning appropriate products to use to prepare for these procedures. The Phospho-soda EZ-Prep system is currently sold in the U.S over-the-counter market by Fleet Laboratories, a subsidiary of C.B. Fleet Company.
Under the terms of the agreement, Fleet will pay Santarus to promote the Phospho-soda EZ-Prep system to gastroenterologists and their medical professional staff based on a set fee per sales call, subject to a minimum and maximum number of sales calls. Santarus is eligible to receive co-promotion fees of up to approximately $3 million over the term of the one-year agreement, subject to reduction in the event of any early termination of the agreement. Santarus will also have the opportunity to earn bonus payments if unit sales exceed predetermined baselines. Santarus did not pay an upfront fee and does not expect to incur any material incremental expenses associated with its promotion of the Fleet product. Fleet will be responsible for providing all training materials, promotional literature and product samples throughout the term of the co-promotion agreement.
"We believe our co-promotion of the Phospho-soda EZ-Prep system will allow us to further leverage our sales organization and generate revenue, without associated incremental costs, starting in the fourth quarter and over the next year," said Gerald T. Proehl, president and chief executive officer of Santarus. "We are pleased to gain a well-respected partner in Fleet and we will continue to look for additional opportunities to leverage our sales organization."
Santarus plans to begin training its sales force in September and to commence Phospho-soda EZ-Prep promotional activities in the fourth quarter of 2007. The Santarus sales force will promote the Phospho-soda EZ-Prep system to gastroenterologists and their associated medical professional staff currently called on by Santarus. ZEGERID® (omeprazole/sodium bicarbonate) brand products will continue to be promoted by the Santarus, inVentiv Health and Otsuka America field sales representatives in the primary detail sales position to targeted gastroenterologists and primary care physicians.
About C.B. Fleet
C.B. Fleet is a privately held company located in Lynchburg, Virginia with major business categories that include gastrointestinal, feminine hygiene and skin care products that are sold in the U.S. and in over 80 countries throughout the world through distributors and company-owned international operations. |
