NovaQuest signs accord on ProStrakan's Sancuso

Galashiels, Scotland-based ProStrakan has formed a strategic alliance with NovaQuest, the partnering group of USA-based Quintiles Transnational, to commercialize the former's products in North America. The collaboration includes an exclusive 75-person sales force, provided by NovaQuest, ahead of the US launch of Sancuso (transdermal granisetron) patch for the prevention of chemotherapy-induced nausea and vomiting.

As part of the accord, NovaQuest will make up-front and milestone payments totalling $10.0 million in cash over the first three years of the collaboration, to support the marketing and promotion of Sancuso, scheduled for launch in first-half 2008. NovaQuest has been granted warrants over 2.6 million new ordinary shares in ProStrakan at 75.5 pence per share, representing a 10% premium over the previous 30 days' average share price, exercisable over 10 years. ProStrakan will pay a tapering royalty on US Sancuso sales to NovaQuest over seven years and retains the capacity to market and promote further products in this market.

The two companies will work together to select the 75-person sales force from Innovex, the contract sales unit of Quintiles. These staff will promote products solely for ProStrakan and drive sales of Sancuso. NovaQuest will pay for the sales force for three years from launch and the Scottish firm will then have the option to absorb the medical reps into its own headcount. Further financial terms were not disclosed.