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news.BioSpecifics Technologies has signed an agreement to improve the deal terms related to its future royalty obligations for Peyronie's disease by buying down its future royalty obligations with a one-time cash payment.
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BioSpecifics has modified its previously announced agreement to lower future royalties’ payable on net sales of its injectable collagenase, Xiaflex, for Peyronie’s disease.
The company said that it has taken this strategic step because of the imminent initiation of the Phase IIb clinical trial, lack of currently available desirable therapeutic options for Peyronie’s patients, the strong commitment of the company’s partner Auxilium Pharmaceuticals to pursue the development for this clinical indication and the results of the three separate positive clinical trials published to date.
BioSpecifics has previously announced that its third party royalty obligations for Dupuytren’s disease are 0.5% of net sales. Auxilium is obligated to pay low double digit royalties at a flat rate as a percentage of future worldwide net sales for all clinical indications, irrespective of territory, and independent of sales volume.
BioSpecifics will also receive a percentage of non royalty payments (upfront, milestones, etc) if Auxilium sub-licenses the marketing rights to a third party. In addition, BioSpecifics will receive a certain percentage mark up on cost of goods based on Auxilium’s manufacturing costs.