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.