Company says commitment to patients will not change
San Francisco, CA -- (SBWIRE) -- 12/07/2012 -- Two pharmaceutical companies have ended a deal to cooperate on a drug to treat Dupuytren’s contracture.
Pfizer and Auxilium had agreed in 2008 to cooperate to commercialize Xiapex in more than 45 countries in Europe and Asia. Dupuytren’s contracture is a tissue condition affecting the hands.
Beginning in April 2013, Auxilium will regain commercialization rights and regulatory responsibilities for Xiapex, which is also used to treat Peyronie’s disease.
An executive for the drugmaker said the deal would not change the company’s commitment to Dupuytren’s patients.
“We now have the strategic flexibility to evaluate all of our options for the continuing commercialization of Xiapex for the treatment of Dupuytren’s contracture, and for gaining approval for Xiapex for the treatment of Peyronie’s disease in the EU and other specified markets,” according to a statement by Auxilium CEO and president Adrian Adams reported at GenEngNews.com.
“Auxilium remains committed to addressing the unmet needs of adult Dupuytren’s contracture patients in the EU,” Adams stated.
It was a “mutual decision” by Pfizer and Auxilium to end their cooperation. Auxilium is expected to receive deferred revenue of $94 million as well as $9 million in deferred costs for the fourth quarter.
Xiapex, the European name for Xiaflex, is the first nonsurgical method of treating Dupuytren’s contracture and Peyronie’s disease.
When the two drug makers began their cooperation, Pfizer paid $75 million to Auxilium up front and pledged an additional $410 million.
The deal involved increasing royalties to Auxilium tied to sales in Pfizer areas. Pfizer in turn would take on some costs for clinical development and some responsibilities for discretionary development. It had the right to get exclusive rights in its territories to commercialize Xiaflex.
With the first Xiapex sale in a big EU market, Auxilium earned a milestone payment of $30 million from Pfizer, and $30 million more in milestone payments were possible.
About Dupuytren’s Disease:
Dupuytren’s Disease (http://www.dupuytrensdisease.net/) is an online resource for people who want to learn more about Dupuytren’s disease. Visitors can find out about causes, symptoms and treatments for Dupuytren’s Disease. People also can research surgical and non-surgical options at the website about Dupuytren’s Contracture.
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