As part of the agreement, Cilag International will pay upfront and milestone payments up to $39 million as well as ongoing royalties on commercial sales of Vivitrol in this territory. The product will be commercialized by Janssen-Cilag, an affiliate company of Cilag International. Alkermes will retain exclusive development and marketing rights to Vivitrol in all markets outside the US, Russia and other countries in the Commonwealth of Independent States (CIS).
Under the terms of the agreement, Cilag International will have primary responsibility for filing the new drug application for Vivitrol in Russia and other countries in the CIS. Alkermes will be responsible for manufacturing Vivitrol and will receive from Cilag International manufacturing revenues and a royalty based on product sales. Cilag International will make an initial payment of $5 million cash to Alkermes and up to an additional $34 million cash payments upon regulatory approvals for the product, certain agreed-upon events and levels of Vivitrol sales.
David Broecker, president and CEO of Alkermes, said: “We believe Janssen-Cilag brings the commercial capabilities and infrastructure required for a successful product launch in Russia and look forward to a productive partnership.”