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Theravance, Clinigen Ink Commercialization Agreement In EU For VIBATIV

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3/11/2013 3:57 AM ET

Clinigen Group plc (CLIN.L) and Theravance Inc. (THRX: Quote) have reached an exclusive commercialization agreement in the European Union or EU and certain other countries in Europe for VIBATIV to treat nosocomial pneumonia, including ventilator-associated pneumonia, known or suspected to be caused by methicillin resistant Staphylococcus aureus or MRSA when other alternatives are not suitable.

VIBATIV is a bactericidal, once-daily injectable lipoglycopeptide antibacterial agent with a dual mechanism of action against Gram-positive bacteria, including resistant pathogens such as MRSA.

According to the deal, Theravance has granted Clinigen exclusive commercialization rights to VIBATIV in the EU and some other European countries, including Switzerland and Norway. Theravance, in turn, would receive a $5 million upfront payment from Clinigen and is entitled to receive tiered royalties on net sales of VIBATIV, ranging from 20% to 30%. The agreement has a term of at least 15 years, with an option to extend exercisable by Clinigen.

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by RTT Staff Writer

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