Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.Massachusetts-based biopharmaceutical firm Oscient Pharmaceuticals Corporation has amended its license and option agreement with Korea's LG Life Sciences for bronchitis and pneumonia treating Factive tablets.
Subscribe to our email newsletter
The amended agreement includes a reduction of future royalties payable to LG Life Sciences, an LG affiliate, at certain Factive (gemifloxacin mesylate) revenue levels in territories covered by the agreement.
While specific terms have not been disclosed, as part of the amended agreement Oscient will make a one-time cash payment of $2 million to LG Life Sciences, recorded in the first quarter of 2005. The modified agreement also calls for an $8 million increase in milestone payments to LG Life Sciences, which are payable as certain sales thresholds for Factive are attained.
“By amending this agreement to include more favorable royalty terms at the higher potential sales levels, we have taken an important step in creating long-term value both for Factive and our shareholders,” stated Steven Rauscher, president and CEO of Oscient. “Our partners at LG Life Sciences share our vision for Factive and with this restructuring have helped make the product a potentially more attractive opportunity for further investment in building the brand.”
Factive tablets have been approved by the FDA for the treatment of acute bacterial exacerbations of chronic bronchitis and community-acquired pneumonia of mild to moderate severity.