Progenics-Wyeth Agreement (NASDAQ:PGNX)
Progenics Pharmaceuticals have announced that they have entered an agreement with Wyeth Pharmaceuticals under which they will be regaining all the worldwide rights to the Relistor franchise from Wyeth Pharmaceuticals. Progenics had originally licensed the drug to Wyeth Pharmaceuticals four years ago but now they would like to take back the charge over the development of a subcutaneous version of the drug after the one year transition period. Apart from the ongoing development of Relistor drug, Progenics Pharmaceuticals will also look after the future development and commercialization of Relistor drug.
At the moment, Relistor (subcutaneous injection) is the only drug approved by the health regulators for the treatment of opioid-induced constipation (OIC) in patients suffering from advanced illness and receiving palliative care. Relistor has been approved in around 30 countries though it was first approved and marketed in US, Canada and European Union.
Under the terms of the transition agreement, Wyeth has agreed to pay Progenics Pharmaceuticals a total of US$ 10 million in six quarterly installments to cover the costs associated with the transition. Wyeth will also return the rights to Progenics which they had received under the 2005 Agreement. Wyeth will also provide exclusive rights to Progenics on royalty-free basis and all the right to Relistor intellectual property. Also Wyeth will provide support to Progenics Pharmaceuticals by manufacturing, sales, marketing, distribution and continuing the ongoing clinical studies and regulatory activities for subcutaneous Relistor.
However, Wyeth Pharmaceuticals will continue to commercialize Relistor through the transition period that will end on September 30, 2010 for the United States, and December 31, 2010 for other international markets. However, Progenics have all the rights for early termination if they feel that it would be in the best interest of their company. Progenics is currently completing the non-clinical work for oral Relistor.
Tags: PGNX, Progenics, Wyeth
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