Paladin Labs has entered an agreement with GSK and Glaxo Group Ltd. under which Paladin will be the exclusive distributor of Dexedrine (dextroamphetamine sulfate) in Canada for three years, after which Paladin has the option to purchase all remaining rights to the product in Canada. GSK will provide certain distribution support services for an interim period. The two companies have also entered a strategic relationship whereby Paladin will have the first right to partner with GSK on a number of products that GSK may choose to license or divest in Canada. Financial terms were not disclosed.
   
Dexedrine is indicated for the treatment of attention deficit hyperactivity disorder (ADHD) and in the adjunctive treatment of narcolepsy. According to IMS Canada, the ADHD market in Canada was valued at about $120 million in 2007. Dexedrine sales in 2007 were $14 million.
   
“This agreement will allow us to add to our portfolio of specialty pharmaceutical products and to build significant critical mass for our organization. Not only will we be adding close to $14 million to our top line next year, but just as importantly, we are establishing a strategic relationship with GSK for potential future transactions like this one,” said Jonathan Ross Goodman, president and chief executive officer of Paladin Labs.
   
“We are very pleased to establish this preferred partner relationship with Paladin owing to their clear history of success in commercializing products like Dexedrine and their record of building win-win relationships with partners,” said Paul Lucas, president and chief executive officer of GSK. “Dexedrine has a long history of efficacy and safety in improving the lives of Canadians suffering from ADHD and narcolepsy. In the very capable hands of Paladin, we are confident that it will continue to meet the needs of Canadian patients and their healthcare providers.”