SkyePharma and Kos to develop Flutiform

UK-based drugmaker SkyePharma says it has entered into an agreement with US firm Kos Pharmaceuticals under which they will jointly develop the former's drug Flutiform (fluticasone and formoterol), for the treatment of asthma and chronic obstructive pulmonary disease. The drug, which consists of a unique combination of a brochodilator and an inhaled steroid, is currently in Phase III assessment as a treatment for asthma in adolescents and adults.

Under the terms of the deal, Kos receives exclusive rights to market Flutiform in the USA, which is predicted to be the largest market for the drug, and has the right of first negotiation when it is launched in Canada. In return SkyePharma will receive a $25.0 million upfront fee and is entitled to up to $165.0 million in milestone payments on the achievement of regulatory approval and revenue target. The London-headquartered company is also eligible for royalties based on product sales.

The firms say that they will submit Flutiform to the US Food and Drug Administration for the asthma indication by the second half of 2007, with the aim of launching the product in 2009. SkyePharma added that it expects the combined asthma and COPD market to be worth around $5.0 billion in the next five years.