Shire buys rights to scar reduction drug

Under the terms of the agreement, Shire has the exclusive right to commercialize Juvista worldwide, with the exception of EU member states. On the FDA’s acceptance of the filing of the biologics license application for Juvista, Shire will also pay $25 million and on FDA approval, between $50 and $150 million depending on the characteristics of the approved product labeling, the pharmaceutical company said.

In addition, Shire will pay royalties to Renovo on sales of Juvista and milestone payments of up to $525 million on the achievement of significant sales targets.

Juvista, which is currently in phase II trials, has been shown in clinical trials to markedly improve subsequent scar appearance in the skin when injected at the time of surgery, Shire said.

The companies are hoping that the product will sell well in a US market worth approximately $4 billion with 42 million patients undergoing surgery each year. Shire said that consumer research showed 85% of patients would self pay for the reduction or prevention of scarring, adding that it is actively managing the economic risk profile of its overall product portfolio by seeking an entry to the private pay market.

Matthew Emmens, chief executive of Shire, said: “We are excited by the potential market opportunity and the profile of this drug candidate, which fits well with our specialty biopharmaceutical focus.”