MedImmune, Inc. has amended its US co-promotion agreement with Abbott for Synagis (palivizumab), MedImmune's first-generation monoclonal antibody (MAb) against respiratory syncytial virus (RSV). Abbott will continue to co-promote Synagis through June 30, 2006, at which time MedImmune will take full responsibility for product sales in the United States.
Under the terms of the amendment, MedImmune will continue to pay a portion of US sales of Synagis to Abbott through 2006. MedImmune will also make additional payments to Abbott, including incentive payments based on the achievement of certain US sales levels of Synagis during the 2005-2006 RSV season. If Numax (motivizumab), its next- generation anti-RSV antibody is not approved for marketing in the United States by September 1, 2008, MedImmune will make additional payments to Abbott based upon sales of Synagis for up to two years. As previously stated, MedImmune intends to market and sell Numax on its own in the United States.
"MedImmune will take full responsibility for sales of Synagis in the United States starting in the 2006-2007 RSV season," David M. Mott, MedImmune's president and chief executive officer said adding, "This expansion will provide us with strategic and operational advantages as we prepare for the continued growth of the paediatric infectious disease component of our business. Key opportunities in this area include the potential launch of CAIV-T, our next generation intranasal influenza vaccine, in the fall of 2007; the potential fall 2008 launch of Numax; and the recently announced anti-staphylococcal antibody program currently in Phase 2 development."
Mott added, "This transaction and the resulting elimination of the co- promotion fees to Abbott should be substantially accretive to MedImmune's earnings per share beginning in 2007. As such, we are increasing our 2007 earnings target to approximately $1.15 per share, excluding stock option expense. Importantly, while we continue to be optimistic about the prospects of Numax, we are now positioned to achieve our 2009 earnings per share goal of $2.00, before stock option expense, whether we are selling Synagis, Numax or both."
Earlier this year, MedImmune and Abbott amended their ex-US distribution agreement, providing Abbott rights to distribute and market Numax upon approval outside of the United States. Abbott's rights to distribute and market Synagis and Numax, upon approval outside the United States, are unaffected by the amendment to the US co-promotion agreement for Synagis, said a company release here.