Replidyne terminates faropenem license

US drugmaker Replidyne has decided to terminate its license deal on faropenem medoxomil with the originator, Japan's Asubio Pharma. As part of this decision, the US firm has also ended its supply agreement with Asubio and Nippon Soda for production of the antibiotic.

The decisions come after Replidyne was unable to secure a partner for the faropenem program. Last month (Marketletter May 5), the firm halted development of the agent, stopping enrollment in a Phase III trial in acute exacerbation of chronic bronchitis, to conserve cash. Faropenem's US New Drug Application included four proposed indications and was rejected by US regulators in 2005, awaiting efficacy findings from new studies.

As a result of its decision, Replidyne expects to incur charges of up to 440.0 million yen ($4.1 million), consisting of a termination fee of up to 375.0 million yen to Asubio and other payments to Nippon Soda.