Actavis will receive exclusive rights to commercialise and further develop MoxDuo IR for the U.S. market while assuming all costs for product launch as well as ongoing marketing and sales efforts in the U.S.
Commencing at MoxDuo IR launch, Actavis will pay QRxPharma royalties of 10% up to 30% depending on net sales thresholds, except for a period starting 3-6 months following launch where QRxPharma will receive a 50% royalty on US$150 million in cumulative sales.
QRxPharma retains a co-promotion/profit-share right, whereby QRxPharma can create its own sales force and provide up to 25% of the effective selling effort to U.S .prescribers at any time following the first 12 months after product launch.
QRxPharma retains full flexibility to market MoxDuo IR outside the U.S.
The binding LOI has been secured by the payment of a non-refundable upfront signing fee of US$6 million to QRxPharma.
The parties expect to execute a more detailed agreement by 15 March 2012.
“We are delighted to announce our partnership with Actavis,” said Dr. John Holaday, Managing Director and Chief Executive Officer, QRxPharma.
“After analysis of several other licensing proposals, it was clear Actavis was the strategic choice for QRxPharma. Actavis’ experience in the manufacturing, distribution, marketing and sales of both patented and generic opioid products enabled a partnership structure with QRxPharma that will accelerate revenues and maximise shareholder value. In addition, the agreement offered by Actavis provided the most flexibility as it only covers the domestic U.S. market for MoxDuo IR with an option for MoxDuo CR and MoxDuo IV.”
Actavis’ Chief Executive Officer for the U.S., Doug Boothe, added: “Actavis Inc. is a company with deep experience and solid results in pain management. Building on the success of Kadian®, we believe the QRxPharma partnership offers significant opportunity to leverage the talent of our team to establish MoxDuo IR as a preferred option in the U.S. acute pain marketplace. We believe MoxDuo IR has tremendous sales potential.”
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