Anacor Pharmaceuticals, Inc. has entered into an exclusive agreement with Sandoz Inc., a Novartis company, under which Sandoz will distribute and commercialize Anacor’s KERYDIN (tavaborole) topical solution in the U.S. PharmaDerm, the branded dermatology business of Sandoz, will be responsible for sales and marketing. The FDA approved the drug on July 8th for the topical treatment of onychomycosis of the toenails, a fungal infection of the nail and nail bed.
Anacor will receive $40 million upfront and an additional milestone payment of $25 million, expected in January 2015. The two companies have entered a long-term profit-sharing arrangement that includes cumulative minimum profit-sharing payments to Anacor in 2016 totaling $45 million. Anacor also has the option to repurchase all rights to KERYDIN from Sandoz three years from launch or December 2017.
Anacor will supply product to Sandoz at cost through Anacor’s contract manufacturers, and Sandoz will be responsible for selling, marketing, distribution, and general and administrative costs related to commercialization. Anacor will hold the NDA and will be responsible for any further development of KERYDIN.
“We are pleased to enter into this agreement with Sandoz to commercialize KERYDIN in the U.S. through PharmaDerm,” said Paul Berns, chief executive officer of Anacor. “PharmaDerm’s dedication to branded prescription products to treat dermatological and podiatric diseases makes it an ideal collaborator to launch KERYDIN. In addition, PharmaDerm has an experienced sales force which will be able to reach the specialty physicians who treat large numbers of patients with onychomycosis.”