Alchemia gets milestone on fondaparinux

Australian drug developer Alchemia has announced the achievement of a significant milestone towards the commercialization of its lead product, generic fondaparinux. As a result, the firm will receive payments from its manufacturing and marketing partner, India's Dr Reddy's totaling just over $1.6 million. $1.0 million will be received this month and a further $625,000 upon either approval of the Abbreviated New Drug Application and December 31, 2009, which ever comes first.

The trigger for the payment, which is subject to confidentiality under the terms of Alchemia's commercialization agreements with Dr Reddy's, signals important progress toward the filing of the fondaparinux ANDA with the US Food and Drug Administration. US Sales of the branded product, GlaxoSmithKline's anticoagulant Arixtra, in the 12 months to September were $172.0 million - up 67% on the corresponding period last year (source: IMS Health).

Receipt of these payments further improves Alchemia's cash position, providing in excess of two years' operational funding at current expenditure levels, the Australian firm notes.