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Ipsen/Medicis finalize agreement on Reloxin development, distribution rights

Article-Ipsen/Medicis finalize agreement on Reloxin development, distribution rights

Paris/Scottsdale, Ariz. — Ipsen, based in Paris, and Scottsdale-based Medicis have finalized an agreement whereby Aesthetica Ltd., a wholly owned subsidiary of Medicis, is granted the rights to develop, distribute and market Ipsen’s Reloxin botulinum toxin product for aesthetic use by physicians in the United States, Canada and Japan.

The product, known overseas as Dysport, is not currently approved for use in the United States.

Medicis has paid or will pay a total of total of $193.6 million for these rights: $90.1 million in consideration for the exclusive distribution rights in the United States, Canada and Japan; $26.5 million upon successful completion of various clinical and regulatory milestones; $75 million upon the product’s approval by the Food and Drug Administration; and $2 million upon regulatory approval of the product in Japan.

Ipsen will manufacture the product for Medicis for the term of the agreement, which is in force until September 2019. Ipsen will receive a sales-based royalty amounting to approximately 30 percent of net sales. Additionally, Medicis and Ipsen will negotiate an agreement relating to the exclusive distribution and development rights of the product for the aesthetic market in Europe and certain other markets. Under this agreement, Medicis would pay up-front and other milestone payments linked to the development and approval of Ipsen’s botulinum toxin type A product, as well as sales-based royalties. Ipsen would manufacture and supply the product to Medicis under the second agreement.

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