This is one of the final steps in Shire’s divestment program – designed to ensure focus on later stage pipeline investment in its core therapeutic areas of CNS, gastrointestinal and renal diseases. In the last 12 months, Shire has had six projects in its core areas approved by regulators.
Avexa will take on full responsibility for the worldwide development of SPD754 in accordance with an agreed development plan. SPD754 is currently in phase II with an anticipated launch target of 2009. Avexa has the right to commercialize SPD754 throughout the world, excluding North America, where Shire retains the right to commercialize the product.
An undisclosed reciprocal royalty will be payable. Included in the deal and subject to subsequent satisfaction of certain conditions, Shire will take a A$2 million equity position in Avexa, subject to Avexa shareholder approval, and will also have an option to acquire four million more shares following the successful completion of the phase IIb trial.
“Our strategic restructuring and divestment has progressed to plan, and the out-licensing of SPD754 to Avexa is another important step in this process and provides us with greater R&D focus on our core markets,” said Matthew Emmens, chief executive of Shire.
“Avexa is an ideal partner for the product, having the skills and expertise to take this program forward and see it through to registration and approval in a timely manner. At the same time, we are able to retain a stake in the future value of the product,” he continued.