ALK-Abello links with Eddingpharm to accelerate growth in China

Danish allergy specialist ALK-Abello (ALKB: DC) and China-based specialty pharmaceutical company Eddingpharm have agreed a collaboration that will expand ALK’s presence in China.

Under the agreement, Eddingpharm will handle the sales and distribution of ALK’s marketed products in China, while ALK will support Eddingpharm with medical and scientific expertise. ALK will maintain a local organization in China.

The deal covers ALK’s diagnostic skin prick test, Soluprick SQ, for house dust mite allergy, and the subcutaneous immunotherapy (SCIT) product, Alutard SQ, also for house dust mite allergy. The collaboration will run for an initial seven years, provided certain performance targets are met. Under the terms of the new deal, Eddingpharm will make an undisclosed upfront payment to ALK to secure exclusive rights in China to Alutard SQ and Soluprick. The agreement is expected to have a minor positive effect on ALK’s 2014 financial outlook, the Danish company said.