MediGene AG builds dermatolgy sales force

German drugmaker MediGene AG has begun building a proprietary drug sales force to market its product Polyphenon E Ointment and other dermatological drugs in some selected European countries. The move has been triggered by its recent acquisition of the European marketing rights to Oracea (doxycycline), for the treatment of the chronic inflammatory skin condition rosacea, from the US specialty drug company CollaGenex.

Oracea is currently in an advanced stage of the approval procedure for the European market, and has already been launched in the USA. Just like MediGene's Polyphenon E Ointment, it is primarily prescribed by dermatologists which permits commercialization of both products together. Initially, MediGene will focus on a small number of markets with high commercial potential. For the other European countries, it intends to conclude marketing partnerships for both products. MediGene is also planning further product portfolio extensions to enhance drug sales.

CollaGenex is entitled to an immediate milestone payment of approximately 4.0 million euros ($5.3 million) from MediGene in return for Oracea, as well as royalties on the sales of the drug, and milestone payments when specified sales targets are reached. MediGene expects European market launch of Oracea in second-half 2007.