Mr. Luc Tanguay reports
THERATECHNOLOGIES REGAINS U.S. MARKETING RIGHTS TO EGRIFTA
Theratechnologies Inc. has reached an agreement with EMD Serono to regain all rights under the current collaboration and licensing agreement entered into in 2008 with EMD Serono, including commercialization rights for EGRIFTA (tesamorelin for injection) in the United States.
"This is a significant moment in the company's history. Having marketing rights for our product in the U.S. will give us the platform we need to accelerate growth and drive profitability. From a research-and-development-focused company, we are now evolving into an integrated specialty pharmaceutical entity," said Luc Tanguay, president and chief executive officer, Theratechnologies.
"EMD Serono is proud to have brought EGRIFTA to market, making it available in the U.S. to the HIV community," said Paris Panayiotopoulos, president and managing director. "We are confident that it will be in good hands with Theratechnologies. We will work closely throughout the transition to ensure minimal disruption for patients. EMD Serono remains committed to the HIV community."
EMD Serono agreed to terminate its collaboration and licensing agreement with Theratechonologies in consideration of an early termination fee of $20-million (U.S.) payable over a five-year period starting on the first anniversary of the closing date. Starting in 2016, Theratechnologies will also pay an undisclosed, increasing royalty based on annual net sales. Royalties will be paid until a cumulative aggregate amount is reached or until Jan. 1, 2024, the first of these events to occur. National Bank Financial acted as the exclusive financial adviser to Theratechnologies for this transaction.
As a result of the termination of the collaboration and licensing agreement, Theratechnologies will be responsible for all operations in the U.S. relating to EGRIFTA, including the conduct of the postapproval commitments mandated by the U.S. Food and Drug Administration.
"The transaction represents a cornerstone of the company's business plan to maximize the commercial potential for EGRIFTA in the United States and elsewhere. By regaining rights to EGRIFTA, we will have full control over a product that we know intimately," added Mr. Tanguay.
Key resources to support U.S. activities
To add commercial and marketing expertise to its management team, Theratechnologies has hired Lyne Fortin as chief commercial officer. Ms. Fortin is a seasoned pharmaceutical professional who holds an MBA, a BPharm and a certificate in chemistry. She has spent close to 30 years working in various positions at Merck & Co. in Canada and in the United States. As vice-president of sales and marketing, she was instrumental in developing strategies in several therapeutic fields and niche products, including treatments indicated for people living with HIV.
Theratechnologies has retained the services of inVentiv Health to establish and manage its operations in the United States. The services provided by inVentiv will include sales force, marketing support, communication, regulatory, compliance, reimbursement and market access. All decisions regarding the commercialization of EGRIFTA will be made from the company's head office in Montreal, Canada.
The closing of the transaction is expected to occur during Theratechnologies' second fiscal quarter of 2014 to allow for a proper transition. Until closing, the original agreement will continue to apply and measures will be implemented, in collaboration with EMD Serono, to ensure a seamless transition for patients, pharmacists, physicians and other stakeholders.
Conference call for analysts
Theratechnologies will hold a conference call today at 9 a.m. ET to discuss this morning's announcement. The call will be hosted by Luc Tanguay, president and chief executive officer. The conference call will be open to questions from financial analysts. Media and other interested individuals are invited to participate in the call on a listen-only basis.
The conference call can be accessed by dialling 1-800-750-5857 (North America) or 1-416-981-9000 (international). The conference call will also be accessible via webcast at the company's website. Audio replay of the conference call will be available until Dec. 27, 2013, by dialling 1-800-558-5253 (North America) or 1-416-626-4100 (international) and by entering the playback code 21699740.
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