Furiex Pharmaceuticals, Inc. (NASDAQ: FURX) today announced it has completed the closings under the previously announced Asset Transfer Agreement with ALZA Corporation and Janssen Pharmaceutica, NV (Janssen) for worldwide Priligy® product rights and the License Agreement with Menarini Group for Priligy commercialization in Europe, most of Asia, Africa, Latin America and the Middle East. Currently, Priligy is marketed for on-demand treatment of premature ejaculation in 15 countries in Europe, Asia and Latin America, and it is approved for that indication in 50 countries worldwide.
Under the terms of the Asset Transfer Agreement, Furiex is obligated to pay Janssen $15.0 million for transition services, with $7.5 million due within 45 days of closing and $3.75 million due within 10 business days of the beginning of the following two successive calendar quarters. In addition, Furiex will be obligated to pay up to $19.0 million in potential on-going clinical study costs, up to $1.0 million for reasonable out-of-pocket expenses over the transition period, and fees related to the product sales and distribution activities that Janssen will perform on behalf of Furiex during the transition period. The transition period is expected to be nine to 12 months.
Under the terms of the License Agreement with Menarini, Furiex will receive a $15.0 million upfront payment within 30 days of closing and $10.0 million of regulatory milestone payments within 15 business days of closing, and is eligible to receive up to $19.0 million to fund potential on-going clinical study costs, up to $10.0 million in launch milestones and up to $40.0 million in sales-based milestones, plus tiered royalties ranging from the mid-teens to mid-twenties in percentage terms.
June S. Almenoff, M.D., Ph.D., president and chief medical officer of Furiex, stated, “We are pleased with the completion of the closings under these agreements and look forward to a smooth transition and a successful collaboration with Menarini.”