Furiex closes Priligy asset transfer, license agreements

The license agreement with Menarini include the commercialization of Priligy in Europe, most of Asia, Africa, Latin America and the Middle East.

Priligy, which is indicated for the treatment of premature ejaculation, is used in 50 countries including 15 countries in Europe, Asia and Latin America.

Under the terms of the asset transfer agreement, Furiex is obligated to pay Janssen $15m for transition services, with $7.5m due within 45 days of closing and $3.75m due within 10 business days of the beginning of the following two successive calendar quarters.

In addition, Furiex will be obligated to pay up to $19m in potential on-going clinical study costs, up to $1.0m for reasonable out-of-pocket expenses over the transition period, and fees related to the product sales and distribution activities.

Under the terms of the license agreement, Furiex will receive upfront payment of $15m, regulatory milestone payments of $10m, $19m to fund potential on-going clinical study, $10m in launch milestones and up to $40m in sales.

Furiex president and chief medical officer June Almenoff said, "We are pleased with the completion of the closings under these agreements and look forward to a smooth transition and a successful collaboration with Menarini."