Egrifta is a synthetic analogue of the human growth hormone releasing factor (GRF) shown to reduce visceral fat in HIV-infected patients with excess abdominal fat associated with lipodystrophy.
GRF is a hypothalamic peptide that acts on the pituitary cells in the brain to stimulate the synthesis and release of endogenous growth hormone.
Under the terms of the agreement, Theratechnologies will be responsible to supply Egrifta to Sanofi and Sanofi will buy Egrifta from Theratechnologies at an undisclosed selling price.
Theratechnologies has kept all future development rights to Egrifta and will be responsible for conducting research and development for any additional programs.
However, Sanofi will be responsible to conduct all regulatory activities in the aforementioned territories in connection with Egrifta for the treatment of excess abdominal fat in HIV-infected patients with lipodystrophy, including seeking the approval of Egrifta in the different countries.
Theratechnologies granted Sanofi an option to commercialise Egrifta in the aforementioned countries for other uses.
Theratechnologies senior executive vice president and CFO Luc Tanguay said that the structure of this agreement clearly emphasises that they believe strongly in the potential of Egrifta in these territories.
"This transaction is structured for Theratechnologies to receive a fair percentage of the selling price which will have a direct effect on our recurring revenues, and on the bottom-line, as we do not need to directly increase our expenses in order to achieve these revenue," Tanguay said.
Egrifta is approved for sale in the US only.