| Meda to benefit from GSK and Valeant deal | Posted on 01/09/2008 in Pharmaceutical Company Product News Meda has announced that the recent deal between GlaxoSmithKline (GSK) and Valeant regarding retigabine could result in the company receiving significant royalty income.
It notes that it is entitled to receive royalties and milestone payments upon the success of retigabine.
Valeant reports the drug will be submitted for regulatory approval in Europe and the US as a treatment for epilepsy, while the firms are pursuing wider indications in the pain area, including neuropathic pain.
Meda forecasts the sales potential for retigabine in epilepsy to be around ten billion Swedish krona (860 million pounds) each year around the world, with Meda eligible for seven per cent of US market sales, predicted to be around 60 per cent of the total.
The company would also receive a royalty rate of three per cent outside the US market and up to 250 million Swedish krona for non-sales related milestone events.
Anders Lonner, chief executive officer of Meda, said: "If the sales expectations are realised, this will result in significant annual revenues and profits for a long time which is very positive for Meda's shareholders."
Last week, GSK announced it would pay Valeant an initial sum of $125 million (68.4 million pounds) for the worldwide rights to retigabine, while Valeant could earn up to $545 million on reaching specified regulatory, development and marketing milestones.Other news stories from 01/09/2008
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