Co-promotion

Co-promotion is where two or more companies sell the same drug under the same trademark.

Two or more companies sell the same drug under the same trademark.This involves combining resources, in particular sales forces, to promote the product under one name.

In pharmaceuticals, two companies launch a single product under the same brand name with the same price and a single marketing strategy.

One of the partners is usually has a licence to exploit the product and the other partner is the originator or licensor.

Report: Co-promotion and Co-marketing Partnering Terms and Agreements

Co-promotion is where two or more companies sell the same drug under the same trademark.

This involves combining resources, in particular sales forces, to promote the product under one name.

In pharmaceuticals, two companies launch a single product under the same brand name with the same price and a single marketing strategy.

One of the partners is usually has a licence to exploit the product and the other partner is the originator or licensor.

There are primarily two types of co-promotion deal:

Standalone co-promotion deal: where two or more parties agree to combine sales capabilities to promote a product or brand. This is normally the sole focus of the deal.

Multi-component deal including co-promotion: where two or more parties anticipate the possibility of co-promoting the product or brand as a consequence of a collaborative R&D effort. The co-promotion element is normally in the form of an 'option' whereby the licensor will have an option to co-promote the product or brand in defined territories once the product or brand is launched.

Attributes of pure co-promotion deals

Pure co-promotion deals tend to occur at the later stages of development, in particular when the product is already marketed or at registration phase.

Co-promotion deals are agreed in order to enable a primary marketer to extend its sales and marketing capabilities. In effect, the partner co-promoter is acting as a service provider to the primary marketer.

The co-promotion deal is enabling the product to penetrate the market within the same territory or additional
territories.

Pure co-promotion agreements often result in implementation between the parties as it forms the basis for the signing of the deal in the first instance.

Attributes of co-promotion in multi-component deals

Co-promotion as part of multi-component deals more often occurs at any time of development. In particular, there are numerous instances during discovery and early clinical development phases.

Co-promotion deals are normally demanded by the small biotech or technology company in order to deliver on aspirations to become the next Amgen or Genentech. Bigpharma often cedes such rights reluctantly in order to secure rights to the best partnering opportunities. Bigpharma’s hope is probably that the biotech will not ultimately seek to activate the co-promotion right.

For the biotech company, the co-promote may well accumulate value as the product approaches the market, in which case it may well be sold back to the partner company for additional payment. Alternatively, it may act as a trigger for acquisition by the partner in order to prevent such rights getting into a competitors hands. This may form part of the biotechs exit strategy.

The majority of co-promotions within multi-component deals never reach fruition due to compound failure, deal failure, company acquisition, or inability to implement due to cost or change in strategy.

The term is often confused with co-marketing.

Report: Co-promotion and Co-marketing Partnering Terms and Agreements

Sample deals from Current Agreements:

1.   Standalone co-promotion deal

Co-promotion agreement for Levadex - Allergan, MAP Pharmaceuticals - Jan 2011

View full deal record at Current Agreements.

Allergan and MAP Pharmaceuticals will co-promote LEVADEX to neurologists and pain specialists in the United States.

Specifically, Allergan will leverage its existing U.S. sales force dedicated to headache specialists using BOTOX for Chronic Migraine, which will be complemented by MAP Pharmaceuticals' field sales force targeting neurologists and pain specialists.

Excerpt from contract:

2.1 Co-Promotion Right. As set forth herein and in the Collaboration Agreement, the Parties have the right and obligation to jointly Commercialize Product to Physician Targets for use in the Field in the Co-Promotion Territory.

2. Multicomponent deal including a co-promotion element:

Co-development, co-promotion, marketing and licensing agreement for Contrave (naltrexone SR/bupropion SR) - Takeda, Orexigen - Sep 2010

View the full deal record at Current Agreements.

Orexigen and Takeda Pharma have an exclusive partnership to develop and commercialize Contrave (naltrexone SR/bupropion SR) for treatment of obesity in the United States, Canada and Mexico.

Orexigen will receive an upfront cash payment of $50 million from Takeda.

Takeda will obtain an exclusive marketing right in the United States, Mexico and Canada.

Orexigen retains the right to co-promote with Takeda in the United States.

Orexigen will be eligible to receive payments of over $1 billion upon achieving certain regulatory and sales-based milestones.

Takeda will pay tiered double-digit royalty payments on net sales in the Territory.

Orexigen and Takeda will work together on ongoing development of the product, with Orexigen leading pre-approval activities, and Takeda leading post-approval activities.

The parties will share in the costs of any future development of the product.

Orexigen and Takeda will work together on ongoing development of the product, with Orexigen leading pre-approval activities, and Takeda leading post-approval activities.

The parties will share in the costs of any future development of the product.

Excerpt from contract:

3.5 Orexigen’s Co-Promote Activities.

3.5.1 Initial Co-Promote Period. During the period commencing on the date of First Commercial Sale of Contrave in the U.S. for the Initial Indication and ending on the [***] ([***]) anniversary of such date (the “Initial Co-Promote Period”), Orexigen shall have the right to participate in the Commercialization of the Product by promoting or detailing the Product in the Field in the U.S. (“Co-Promote”), Orexigen shall have the right to provide up to [***] ([***]) Primary Detail Equivalents per year, of which at least [***] percent ([***]%) shall be [***] Details during the [***], and [***] percent ([***]%) shall be [***] Details in each [***] thereafter. Orexigen shall perform its Primary Detail Equivalents only through Orexigen’s Sales Representatives and exclusively [***] or other targets approved by the JCC. Takeda shall be required to pay Orexigen the PDE Costs incurred by Orexigen in connection with such Co-Promote activities under this Section 3.5.1 as provided in Section 3.3.4(b). Orexigen shall provide written notice to Takeda of its intention to Co-Promote under this Section 3.5.1 no later than [***], in which case Orexigen shall be permitted to begin its Co-Promote activities on [***]. If Orexigen does not provide such written notice to Takeda within such time period, Orexigen shall be permitted to exercise such right by providing Takeda with written notice either: (a) at any time between [***] and [***], in which case Orexigen shall be permitted to begin its Co-Promote activities on [***], or (b) at any time between [***] and [***], in which case Orexigen shall be permitted to begin its Co-Promote activities on [***].

View or report title: Co-promotion and Co-marketing Terms and Agreements.

View search results at Current Partnering: Co-promotion

Co-promotion is often confused with co-marketing.

 

 

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