NexMed Inc, a developer of treatments based on the NexACT drug delivery technology, has entered into a license, supply and distribution agreement with Schering AG, Germany, a company release said.
This agreement provides Schering with exclusive commercialization rights to Alprox-TD in Europe, Russia, the Middle East, South Africa, Australia and New Zealand. NexMed will retain the intellectual property relating to Alprox-TD and will manufacture and supply the product to Schering. Under the terms of this partnership, NexMed will receive future milestone payments as well as a share of the revenue through transfer price payments based on the supply of Alprox-TD. The overall financial terms are intended, depending upon performance levels, to approximate an equal sharing of the value of the product, the release says.
Commenting on this commercialization partnership, Dr. Joseph Mo, president and CEO of NexMed stated, "Schering is our partner of choice for Alprox-TD given its significant andrology product portfolio and commitment to improving men's health. Through this deal, NexMed will be able to participate in revenue generated by Schering on Alprox-TD sales, thereby establishing a potential revenue stream that should enable us to continue bringing important drugs to market based upon our proprietary NexACT technology. We look forward to working closely with Schering over the coming years." Dr. Mo added, "We continue to engage in discussions with various pharmaceutical companies for the commercialization of Alprox-TD in other markets, including the US."