Auxilium Pharmaceuticals (NASDAQ:AUXL) has agreed to a licensing deal valued at up to $68.5 million with Swiss pharmaceutical company, Actelion.
The licensing deal for its drug, Xiaflex, for the treatment of Peyronie’s disease and Dupuytren’s contracture, will cover Canada, Brazil, Australia and Mexico. Auxilium will get $10 million initially and another $58.5 million if the treatments meet certain regulatory, reimbursement and sales milestones.
Although Xiaflex has been approved for the treatment of Dupuytren’s contracture, the Malvern, Pennsylvania biopharmaceutical company is awaiting top-line results from a phase 3 clinical trial for its treatment of Peyronie’s disease, expected to come in the next quarter.
When Investment Rhymes with Canada
Canada has a proud history of achievement in the areas of science and technology, and the field of biomanufacturing and life sciences is no exception.
Peyronie’s disease is a connective tissue disorder that results in the growth of fibrous plaque in the soft tissue of the penis and can cause pain, abnormal curvature and erectile dysfunction, among other symptoms. It can be associated with diabetes. It affects 5 percent of men, according to a 2007 study cited by the company, but the social stigma associated with the disease can discourage patients from getting diagnosed and treated.
Dupuytren’s contracture is a thickening of the tissue beneath the skin on the palm of the hand and the fingers, making it difficult or impossible to extend and straighten the fingers. Pfizer (NYSE:PFE) serves as an Auxilium partner to market the drug in Europe.
The company’s primary source of revenue is from its testosterone replacement therapy gel, Testim, which had U.S. sales of $205 million for 2011, according to Auxilium’s fourth-quarter earnings report published today. Global revenue from Xiaflex for treatment of Dupuytren’s contracture amounted to $56.4 million.
