Organon and Ligand terminate Avinza co-promotion
Akzo Nobel's human healthcare business, Organon has agreed with US-based Ligand Pharmaceuticals to end their Avinza co-promotion and return the rights to Ligand.
Akzo Nobel's human healthcare business, Organon has agreed with US-based Ligand Pharmaceuticals to end their Avinza co-promotion and return the rights to Ligand.
The companies have agreed to continue to co-promote Avinza, (developed as a chronic pain treatment) during a transition period ending 30 September, 2006. This transition will include a minimum number of product sales calls per quarter, as well as the transfer of ongoing promotions, managed care contracts, clinical trials and key opinion leader relationships to Ligand.
Ligand chairman, David Robinson, said the new agreement will give the company the flexibility to explore all strategic alternatives for Avinza with other potential partners, while Michael Novinski, president, Organon USA, said it would enable Organon to focus resources on its current and future product portfolio.
The companies resolved their disagreement concerning prior co-promotion fees. Ligand will pay Organon USD14.75m by 30 January 2006 and, in consideration of the early termination and return of rights, will pay Organon USD37.75m by 15 October 2006. It will make a final USD10.0m payment to Organon by 15 January, 2007, provided that Organon has made its minimum required level of sales calls.