Labopharm Signs Distribution, Supply Agreement With MSD

Labopharm’s wholly-owned subsidiary, Labopharm Europe has completed a distribution and supply agreement with Merck Sharp & Dohme (MSD), a UK subsidiary of Merck & Co. As per the deal, MSD will distribute and market Tradorec XL (once-daily tramadol based on Labopharm’s proprietary Contramid technology).

Under the terms of the agreement, MSD has the exclusive right to market and sell Tradorec XL in England, Northern Ireland, Scotland, Wales, the Channel Islands and the Isle of Man. Labopharm will supply MSD with finished, packaged product at a fixed transfer price inclusive of gross margin. Labopharm will also receive an up-front payment of £650,000.

James Howard-Tripp, president and chief executive officer of Labopharm, said: “The United Kingdom is the second largest tramadol market in Europe, which represents a significant opportunity for Tradorec XL. We’re confident that our new partner, MSD, can build on the success to date and capitalize on the opportunity offered by our once-daily tramadol for the benefit of patients and physicians.”

Deepak Khanna, senior vice president and general manager of MSD, said: “We are very pleased to have finalized this agreement with Labopharm. An innovative medicine like Tradorec XL fits the profile of products that are of interest to MSD. It has unrealized potential and it complements our current portfolio.”