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news.Replidyne has decided to terminate its license agreement with Asubio Pharma for faropenem medoxomil.
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In conjunction with this decision, the company also announced that it has terminated its supply agreement with Asubio Pharma and Nippon Soda for production of faropenem. These decisions were made as a result of the company being unable to secure a partner for the faropenem program.
As a result of this decision, the company expects to incur charges of up to $4.1 million, consisting of a license termination fee of up to $3.5 million to Asubio Pharma and the reimbursement of engineering costs under its supply agreement of up to $0.6 million to Nippon Soda.
Replidyne will also pay Nippon Soda approximately $0.9 million for delay compensation related to the period from January 1, 2008 through the termination of its supply agreement.
Kenneth Collins, president and CEO of Replidyne, said: “We have decided to terminate this program in order to preserve cash and focus our attention on our previously discussed strategic initiatives and our C difficile infection program and novel anti-infective programs based on DNA replication inhibition technology.”