PARSIPPANY, N.J. and MONTREAL, QUEBEC, April 5, 2013 /PRNewswire/ -- Actavis, Inc. (NYSE: ACT), and Valeant Pharmaceuticals International, Inc. (NYSE: VRX) (TSX: VRX) today announced that they have entered into an agreement, effective immediately, for Actavis to be the exclusive marketer and distributor of an authorized generic of Valeant's Zovirax® ointment (acyclovir 5%) product. Additionally, Valeant has granted Actavis the exclusive right to co-promote Zovirax® cream (acyclovir 5%) to obstetricians and gynecologists in the U.S., and Actavis has granted Valeant the exclusive right to co-promote Actavis Specialty Brands' Cordran® Tape (flurandrenolide) product in the U.S.
Zovirax Authorized Generic AgreementUnder the terms of the exclusive Zovirax® ointment agreement, Valeant will supply Actavis with a generic version of Valeant's Zovirax® ointment product and Actavis will market and distribute the product in the United States. Actavis will record all of the net sales of the generic ointment product and Valeant will receive a share of the economics. Other terms of the agreement have not been disclosed.
Zovirax® Cream and Cordran® Tape Co-Promotion AgreementsUnder terms of the agreement related to the co-promotion of Zovirax® cream, Actavis will utilize its existing Specialty Brands sales and marketing structure to promote the product and will receive a co-promotion fee from sales generated by prescriptions written by its defined targeted physician group. Under the terms of the Cordran® Tape co-promotion agreement, Valeant will utilize its existing Dermatology sales and marketing structure to promote the product, and will receive a co-promotion fee on sales. Each party will retain all rights in and to its respective products and trademarks including booking of sales. Other terms of the agreement have not been disclosed.Zovirax® cream 5% is indicated for the treatment of recurrent herpes labialis (cold sores) in adults and adolescents (12 years of age and older). Zovirax® ointment 5% is indicated in the management of initial genital herpes and in limited non-life-threatening mucocutaneous herpes simplex virus infections in immunocompromised patients.