ProStrakan signs licence and distribution deal for two key drugs in Canada

DOUGLAS HAMILTON

Published on 23 Dec 2008

ProStrakan Group, the Scottish specialist pharmaceutical company, yesterday announced that it has signed an exclusive licence and distribution agreement with Paladin Labs for its Abstral and Sancuso products in Canada.

Under the terms of the agreement, ProStrakan will receive an undisclosed upfront payment. Further milestone payments will be paid subject to the products being approved by the Canadian regulatory authority and the subsequent achievement of certain sales targets.

"Our strategy is to ensure that we capitalise on the strength of our high value products through out-licensing agreements in territories that are non-core for Pro-Strakan. In Paladin, we have a partner with demonstrable sales and marketing expertise, particularly in the area of cancer pain, and a very significant presence in the Canadian pharmaceuticals market," said Dr Wilson Totten, ProStrakan's chief executive.

Abstral, formerly Rapinyl, is a fast-dissolving tablet for under-the-tongue administration of fentanyl, intended for the management of breakthrough cancer pain in patients who are already receiving analgesics. Pro-Strakan has obtained the exclusive rights to this product in Europe and North America from the Swedish pharmaceutical firm Orexo.

Sancuso, is ProStrakan's transdermal patch for the prevention of chemotherapy-induced nausea and vomit- ing in patients receiving chemotherapy for up to five consecutive days.

Paladin intends to submit Abstral and Sancuso for Canadian regulatory approval in the new year. "It is our intention to submit these two innovative products for Canadian regulatory approval in mid-2009. We expect Abstral and Sancuso to fulfill an unmet need for cancer patients in Canada," said Jonathan Ross Goodman, president and chief executive officer of Paladin Labs.

Paladin Labs, headquartered in Montreal, is a specialty pharmaceutical firm focused on acquiring or in-licensing innovative drugs for the Canadian market.

Samir Devani, an analyst at the Japanese investment house Nomura, described the deal as a good one for Pro-Strakan, which is based in the Borders town of Galashiels.

"This is clearly a positive deal for ProStrakan and in line with its strategy of extracting value from its pipeline products by completing marketing deals for non-core territories, " Devani said in a research note to investors. "We maintain our Buy rating and fair value range of 130p to 140p."