ProStrakan Group has signed an agreement giving leading South Korean pharmaceutical group LG Life Sciences exclusive distribution rights in its domestic market for Sancuso, a transdermal patch for the prevention of chemotherapy-induced nausea and vomiting.
Under the terms of the deal, ProStrakan is due upfront and milestone payments - subject to attaining certain approvals and sales goals - of up to $6 million, as well as an undisclosed royalty rate on sales generated in South Korea by LGLS.
Sancuso, which delivers granisteron steadily into the bloodstream to combat these side-effects of chemotherapy, thereby offering an advantage over injectable or oral rivals, is currently being assessed by regulators in both the US and Europe. Once the regulatory nod is obtained in the USA, LGLS is planning to seek approval in South Korea, according to ProStrakan.
Explaining the strategy behind the alliance, Dr Wilson Totten, ProStrakan’s Chief Executive, said: “In addition to building our own sales forces, we are growing a meaningful revenue stream from outlicensing our product portfolio in markets where we do not intend to build a direct commercial presence. Our partnership with LG Life Sciences is another clear example of this, capitalising on the global value of Sancuso, our latest product to reach the registration stage.”
Earlier this month, the group signed a deal with Scandinavian firm Orexo to establish a jointly-owned salesforce that will cover the Nordic markets of Sweden, Norway, Finland, Denmark and Iceland.
The new entity will sell both currently marketed and future products belonging to both firms, including Sancuso.