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news.After allowing Cobalt Pharmaceuticals a non-exclusive right to sell a generic version of its heart drug, Altace, King Pharmaceuticals has moved to extend its franchise on the drug by collaborating with Arrow International to commercialize new formulations of the drug.
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King is set to pay up to $110 million for rights to current and future new drug applications held by Arrow regarding novel formulations of Altace.
The agreements also include intellectual property, including patent rights and technology licenses. Arrow will also be responsible for the manufacture and supply of new formulations of Altace for King.
King made an upfront payment to Arrow of $35 million, and Arrow will also receive payments of $50 million based on the timing of certain events and could receive an additional $25 million based on the occurrence of certain conditions. Arrow will also earn fees for the manufacture and supply of new formulations.
Under its agreement with Cobalt Pharmaceuticals, King will supply a capsule formulation of Altace which Cobalt will market in the US. The agreement between the two companies came after Cobalt launched a challenge to the patents covering the drug.
“With this transaction, we believe we have added to our development pipeline promising potential line extensions for Altace, our leading branded ACE Inhibitor. Importantly, we believe this transaction enhances the long-term value of our Altace franchise and is consistent with our strategy to maximize the potential of our existing portfolio of products,” said Steve Andrzejewski, chief commercial officer of King.