Bayer has snapped up certain licensing rights from ProStrakan to develop and market the Scotland-based speciality pharmaceuticals group’s testosterone replacement gel Tostran in 65 countries.

The German firm has agreed to pay undisclosed upfront and milestone payments to ProStrakan for Tostran, which is used for testosterone replacement in hypogonadal men. The Galashiels-based will supply the treatment to the Bayer Schering Pharma unit in Canada, Latin America, the Middle East, Africa, Asia and the Pacific region.

Tostran is currently marketed by ProStrakan in Europe under a number of brand names including Tostrex and Itnogen. A New Drug Application re-submission by the latter firm to the US Food & Drug Administration
remains on track before the end of the year where it will be sold as Fortigel, if approved.

Wilson Totten, ProStrakan’s chief executive, said that outlicensing Tostran to Bayer in these territories “is in line with our strategy of capitalising on the value of our products in parts of the world that are non-core” for the firm. He added that Bayer Schering Pharma is “a worthy and sizeable partner with a deep understanding of the testosterone replacement market who is well-placed to bring this product to clinicians in each of these territories.”