Organon and Acrux in drug development deal

Organon, the human health care business of the Dutch group Akzo Nobel, and Australian drug delivery company Acrux have entered into an agreement to develop and commercialize a line of contraceptives that utilize the latter's unique spray-based delivery system. The Dutch firm added that it would be targeting the worldwide hormonal contraceptives market, which is worth around $6.70 billion.

Under the terms of the deal, Organon has obtained a license to employ Acrux' delivery technology in combination with several of its developmental contraceptive drugs. Initially, Acrux will be responsible for formulating the selected compounds, with Organon funding all subsequent clinical trials.

The Australian firm is set to receive payments of between $12.0 million and $16.0 million for each compound that is successfully developed, and is also entitled to royalties based on product sales. Further financial details of the deal were not provided.