Clinigen and Theravance deal on Vibativ; Cubist expands rights to ceftolozane

UK-based Clinigen Group (LSE: CLIN ) and Theravance (Nasdaq: THRX) of the USA have entered into an exclusive agreement in Europe for Vibativ (telavancin) for the treatment of nosocomial pneumonia (hospital-acquired), including ventilator-associated pneumonia, known or suspected to be caused by methicillin resistant Staphylococcus aureus (MRSA) when other alternatives are not suitable.

Under the terms of the accord, Theravance has granted Clinigen exclusive commercialization rights to Vibativ in the European Union and certain other European countries (including Switzerland and Norway). In exchange, Theravance will receive a $5 million upfront payment from Clinigen and is entitled to receive tiered royalties on net sales of Vibativ, ranging from 20% to 30%. The agreement has a term of at least 15 years, with an option to extend exercisable by Clinigen.

Japanese drug major Astellas Pharma (TYO: 4503) last year exercised its right to terminate the global license, development and commercialization agreement with Theravance for Vibativ (telavancin) for injection, discovered by Theravance, which received an upfront payment of $65 million and accrued regulatory milestone of $156 million under the deal between the two companies (The Pharma Letter January 9, 2012).