Progenics regains global rights to Relistor from Wyeth; will seek new partners

USA-based Progenics Pharmaceuticals says it is regaining all worldwide rights to the Relistor (methylnaltrexone) franchise from drug major Wyeth (which is in the process of being acquired by Pfizer in a $68 billion deal). Progenics licensed the drug to Wyeth Pharmaceuticals in 2005.

Progenics said it will assume full control of future development and commercialisation of subcutaneous Relistor after a one-year transition, and will immediately take over development of the oral form of the drug, as well as looking for a new partner .Relistor generated $3.2 million in sales in the second quarter of 2009, and analysts from Cowen & Co forecast annual revenue for the drug could reach $90 million by 2012.

Under the terms of the transition accord, Wyeth has agreed to:

' Pay Progenics a total of $10 million in six quarterly installments to cover certain costs associated with the transition.
' Exclusively license to Progenics, on a royalty-free basis, its rights to Relistor intellectual property that arose under the companies' 2005 License and Co-Development Agreement
' Return to Progenics rights previously granted to it under the companies' 2005 Agreement.
' Provide support by continuing manufacturing, marketing, sales, distribution, currently ongoing clinical studies and regulatory activities for subcutaneous Relistor.

Relistor (subcutaneous injection) is the only drug approved to treat opioid-induced constipation (OIC) in patients with advanced illness receiving palliative care. The drug initially received marketing approval in Canada, the USA and the European Union in 2008 and is currently marketed in 30 countries. Additional launches are planned throughout 2009 and 2010.

Wyeth will continue to commercialize Relistor through a transition period ending September 30, 2010 in the USA and December 31, 2010 internationally, subject to earlier termination by Progenics.

Progenics says it is pursuing a range of strategic alternatives to maximize the Relistor franchise, including: licensing the Relistor franchise to a worldwide partner, with Progenics co-promoting the drug with its own sales force in the USA; commercializing the franchise in the USA on its own, and collaborating with one or more regional partners internationally; forming strategic alliances with biopharmaceutical companies with marketed products or late-stage product candidates that are commercially compatible with Relistor; and forming a collaboration to assist with the development and commercialization of oral Relistor.