Veloxis Pharma in LCP-Tacro deal with Chiesi

Denmark’s Veloxis Pharmaceuticals A/S (OMX: VELO) has entered into an exclusive distribution agreement with privately-owned Italian drugmaker Chiesi Farmaceutici SpA for the commercialization and distribution of its novel formulation immunosuppressant drug candidate LCP-Tacro (once-daily tacrolimus) in certain countries, including Europe, Turkey and CIS countries.

Under the terms of the deal, Veloxis will receive up-front and milestone payments of up to $47.5 million (in aggregate). The payments are subject to the achievement of certain regulatory milestones and sales targets. Veloxis will supply product to Chiesi for sale in the territory at a transfer price at a pre-agreed double-digit percentage of the product's sales price. In addition, Chiesi is committed to certain minimum purchases during the term of the agreement. The agreement will extend through expiry of product patents in the territory of the agreement.

Phase III studies underway; regulatory filings expected in 2013