The purpose of the transaction is to explore Durolane and other products for the management of osteoarthritis (OA) in joints and to explore other orthopedic uses and diseases.
The two companies have entered into a licensing and supply agreement under which Q-Med has granted Smith & Nephew the global exclusive right to market, sell and distribute Durolane and other products intended for the management of orthopedic conditions and diseases.
Q-Med will manufacture and supply all products developed under this transaction. Smith & Nephew will focus on, and bear the costs for, the clinical development, registration and commercialization of new products worldwide.
Under the terms of the agreement, the major financial component will be royalties on product sales worldwide. In addition to the royalty payments, Q-Med will receive an upfront payment of $10 million, and four additional milestone payments, which could total $60 million, related to the US approval and commercialization of Durolane.
“The joint fluid therapy market is growing quickly, driven by increased patient awareness and demand for non-surgical alternatives for the treatment of osteoarthritis,” said Mark Augusti, president of Smith & Nephew Orthopaedic Trauma and Clinical Therapies. “This strategic transaction with Q-Med enhances Smith & Nephew's presence in this market, and underscores our commitment to the development and commercialization of effective therapies to help patients regain their mobility.”