By Bill Berkrot
NEW YORK, Oct 14 (Reuters) - Progenics Pharmaceuticals Inc said on Wednesday it reached a deal with Wyeth to regain worldwide rights to Relistor, a medicine used to treat constipation caused by opioid pain drugs.
Progenics, which had licensed the drug to Wyeth in 2005, said it will assume control of future development and sales of subcutaneous Relistor after a one-year transition and will immediately take over development of an oral formulation.
'We feel that by having a focused effort on Relistor, our company, the company that has the most at stake, can drive the commercialization of this product in the best possible way,' Progenics Chief Executive Paul Maddon said in an interview.
Under terms of the deal, Wyeth will pay Progenics a total of $10 million in six quarterly installments to cover certain costs associated with the transition.
Wyeth, which is in the process of being acquired by Pfizer Inc, has also agreed to continue manufacturing, marketing, sales, distribution, currently ongoing clinical studies and regulatory activities for subcutaneous Relistor during the one-year transition period, Progenics said.
While Wyeth sells the drug, Progenics will continue to receive royalties.
'This transition is important to allow a smooth change of control of the program,' Maddon said.
Taking back Relistor makes sense, Maddon said, as Progenics can give the product its undivided attention, while Wyeth and Pfizer are consumed with transaction and transition issues surrounding their $68 billion merger.
'We feel that we can control our own destiny if we regain rights to the product and execute on a plan that's more focused than a Wyeth or a Pfizer can bring to the table,' Maddon said.
Relistor won U.S. and European approval in 2008 to treat opioid-induced constipation in patients with advanced illness receiving palliative care -- the only currently approved drug for that indication.
It had only $3.2 million in second quarter sales and analysts from Cowen and Co forecast Relistor sales reaching $90 million by 2012, an insignificant sum for a Pfizer.
But Progenics sees the real commercial potential of the product in treating opioid-induced constipation in patients with chronic pain, such as back pain -- a many times larger patient population than for its currently approved use.
Progenics said it plans to file an application seeking U.S. approval for that use in early 2011. It has completed enrollment in a 1,000-plus patient safety study for that indication and is also working on developing a more convenient oral formulation of the drug.
'Another reason why it was important for Progenics to regain rights to the product is because is was very important for us to move rapidly on the oral drug program,' Maddon said.
Progenics said it would likely look for Relistor marketing partners for various geographic areas outside the United States and either sell the product on its own in the United States or co-promote it with a partner.
'It's important to us to maximize the value of this asset because it's our only commercial product,' Maddon said.
(Reporting by Bill Berkrot; editing by Andre Grenon) Keywords: PROGENICS/WYETH (bill.berkrot@thomsonreuters.com; +1 646 223-6030; Reuters Messaging: bill.berkrot.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
NEW YORK, Oct 14 (Reuters) - Progenics Pharmaceuticals Inc said on Wednesday it reached a deal with Wyeth to regain worldwide rights to Relistor, a medicine used to treat constipation caused by opioid pain drugs.
Progenics, which had licensed the drug to Wyeth in 2005, said it will assume control of future development and sales of subcutaneous Relistor after a one-year transition and will immediately take over development of an oral formulation.
'We feel that by having a focused effort on Relistor, our company, the company that has the most at stake, can drive the commercialization of this product in the best possible way,' Progenics Chief Executive Paul Maddon said in an interview.
Under terms of the deal, Wyeth will pay Progenics a total of $10 million in six quarterly installments to cover certain costs associated with the transition.
Wyeth, which is in the process of being acquired by Pfizer Inc, has also agreed to continue manufacturing, marketing, sales, distribution, currently ongoing clinical studies and regulatory activities for subcutaneous Relistor during the one-year transition period, Progenics said.
While Wyeth sells the drug, Progenics will continue to receive royalties.
'This transition is important to allow a smooth change of control of the program,' Maddon said.
Taking back Relistor makes sense, Maddon said, as Progenics can give the product its undivided attention, while Wyeth and Pfizer are consumed with transaction and transition issues surrounding their $68 billion merger.
'We feel that we can control our own destiny if we regain rights to the product and execute on a plan that's more focused than a Wyeth or a Pfizer can bring to the table,' Maddon said.
Relistor won U.S. and European approval in 2008 to treat opioid-induced constipation in patients with advanced illness receiving palliative care -- the only currently approved drug for that indication.
It had only $3.2 million in second quarter sales and analysts from Cowen and Co forecast Relistor sales reaching $90 million by 2012, an insignificant sum for a Pfizer.
But Progenics sees the real commercial potential of the product in treating opioid-induced constipation in patients with chronic pain, such as back pain -- a many times larger patient population than for its currently approved use.
Progenics said it plans to file an application seeking U.S. approval for that use in early 2011. It has completed enrollment in a 1,000-plus patient safety study for that indication and is also working on developing a more convenient oral formulation of the drug.
'Another reason why it was important for Progenics to regain rights to the product is because is was very important for us to move rapidly on the oral drug program,' Maddon said.
Progenics said it would likely look for Relistor marketing partners for various geographic areas outside the United States and either sell the product on its own in the United States or co-promote it with a partner.
'It's important to us to maximize the value of this asset because it's our only commercial product,' Maddon said.
(Reporting by Bill Berkrot; editing by Andre Grenon) Keywords: PROGENICS/WYETH (bill.berkrot@thomsonreuters.com; +1 646 223-6030; Reuters Messaging: bill.berkrot.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.