Cosmo signs licensing deal
Lainate – Cosmo Pharmaceuticals SpA (Lainate, Italy) signed a licensing agreement in mid-October with Ferring Pharmaceuticals (Saint-Prex, Switzerland) for Budesonide MMXTM, an oral corticosteroid for ulcerative colitis that is currently being tested in a Europe-wide phase III trial.
Under the agreement, Ferring receives an exclusive worldwide license (excluding Japan and the US) for distribution of the drug candidate, which is expected to show fewer side effects than other corticoids due to its targeted release in the colon by Cosmo’s multi-matrix system (MMX) drug delivery technology.
In return, Ferring will immediately partner with Cosmo on the multi-centre phase III clinical trials, and will also make an initial payment of a2 million for licensing rights. After market entry, which is scheduled for 2010, Ferring will make revenue-related milestone payments that could potentially reach a58 million over the life of the product. Ferring has also agreed to pay double-digit royalties on net revenue.
According to media reports, a decision on how Cosmo will build its own marketing capabilities in the important US market is expected by the end of the year.