Anacor Pharmaceuticals (NASDAQ:ANAC) enters into an exclusive agreement with Sandoz (NYSE:NVS) to commercialize Anacor's Kerydin (tavaborole) topical solution in the U.S. Sandoz's PharmaDerm division will be responsible for the sales and marketing of the recently-FDA cleared antifungal for the treatment of onychomycosis of the toenails.
Under the terms of the agreement, Sandoz will pay Anacor an upfront fee of $40M and a milestone payment of $25M in January 2015. The companies will share profits equally after Sandoz receives the first $50M in gross profits. Anacor will receive a minimum of $45M in profit-sharing payments in 2016. It will also have the option to repurchase the rights to Kerydin after three years or December 31, 2017 at a yet-to-be-determined price.
The U.S. regulator clears Anacor Pharmaceuticals' (ANAC) Kerydin (tavaborole) topical solution for the treatment of onychomycosis of the toenails. It is a clear, colorless alcohol-based solution that is applied with a dropper to the infected toenail once daily for 48 weeks.
"In our view, a settlement was always in the cards," Aegis says, regarding Valeant's (VRX -1.3%) $142.5M deal with Anacor (ANAC -2.4%).
Analyst Raghuram Selvarajuis notes that ANAC was looking for more than $200M originally. Still, Selvarajuis calls the deal "attractive" for ANAC.
Aegis maintains a Buy rating on VRX and says FDA approval for Jublia should come in June of next year: Since no efficacy or safety issues were raised by the FDA, VRX believes that these items can be addressed in a timely manner.
Anacor (ANAC +0.6%) settles outstanding litigation with Valeant (VRX -0.4%) for $142.5M, which will be paid to ANAC "no later than November 8."
The deal puts to rest "all existing and future claims as well as the damages awarded in [the] arbitration as well as resolves its dispute with Medicis and all other disputes between ANAC, VRX, and DPS related to ANAC's intellectual property, confidential information and contractual rights." (PR)
Earlier this month, an arbitrator awarded ANAC $100M in damages related to a breach of contract claim brought by ANAC against Dow Pharmaceutical Sciences, which was acquired by VRX.