Orchid’s responsibilities will include development of active pharmaceutical ingredients, development of final formulations, and manufacture of finished products for exclusive sale by Alpharma in the US and Europe.
During the period of exclusive sales by Alpharma, Alpharma and Orchid will share profits and Alpharma will reimburse Orchid for certain development costs.
Ten products, with launch dates commencing in 2007, have been initially selected for this arrangement and Alpharma anticipates that additional products will be added over time.
“This arrangement will supplement our internal development efforts, strengthening our pipeline and giving us access to new markets, low cost manufacturing, additional development capacity, and more favorable access to raw material supply,” commented Ingrid Wiik, Alpharma vice chairman, president and CEO. “We look forward to a long and mutually beneficial relationship with Orchid.”