International specialty pharma company Meda AB (OMX: MEDA A) (STO: MEDA A) had a strong week. The company acquired remaining North American rights to cold sores (herpes labialis) treatment Xerese from Medivir (STO:MVIR B) (OMX: MVIR)for 45 million USD. This agreement will trigger a payment to AstraZeneca (LSE: AZN, OMXS: AZN, NYSE: AZN).
Under an earlier agreement between the companies, Medivir was receiving royalties on sales, which have now been reduced to zero. Under the new agreement, Meda will seek to develop new products (particularly for genital herpes indication) for which Medivir would get low royalties and a milestone payment in the case of FDA approval.
Just a day after that, Meda announced it has signed a collaboration agreement with Valeant Pharmaceuticals (NYSE: VRX) (TSX: VRX). Under the agreement Meda out-licensed North American rights for aforementioned Xerese (aciclovir + hydrocortisone) and Elidel (second line treatment for atopic dermatitis) to Valeant for initial payment of 76 million USD. Meda will also earn long term royalties for Zovirax (GSK brandname for aciclovir) that the company expects will total at least 250 million USD by 2015.
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