Viropro Inc. has announced the signing of a Memorandum of Understanding (MoU) with BioChallenge, a privately-held pharmaceutical company operating in Tunis. This binding MoU aims at working jointly at the development and the production of several therapeutic proteins. This first MoU is in accordance with our model built on recurring sales revenues and short and long term profitability.
This agreement would bring Viropro its first revenues, based on specific objectives consisting of fixed licensing fees, development milestones, technology transfer and royalties varying from 5 per cent to 10 per cent of net sales depending on the total volume. Revenues generated from the technology transfer of these first 3 proteins to Viropro should reach approximately US $10.5 million during this 4-year period, to which royalties estimated at US $17 million will be added after year 4 over a 10-year period. Products sales were estimated with a conservative market penetration.
After completion of the feasibility study by the end of July 2006, the development and technology transfer of the first 3 therapeutic proteins will be done over a 4-year period. The first proteins to be brought to market starting in 2009 will be Erythropoietin, Interferon Beta and growth factors such as G-CSF used to treat diseases such as cancer and multiple sclerosis. "Today's announcement is a turning point for Viropro as we are expanding our horizons in terms of revenue growth, the building out of a worldwide network as exemplified by this important new agreement," said Jean-Marie Dupuy, president & chief executive officer, Viropro Inc.
The regions attributed to BioChallenge to market these products include Africa, Middle-East, Indonesia, Pakistan and the European Community. Mahjoub Ameur, chairman of the board of BioChallenge stated: "This is an important milestone for BioChallenge as it will be the first implementation of a manufacturing facility for therapeutic proteins in this part of the world. It will allow treating unmet medical needs at a lower price while ensuring an attractive return on investment."
Viropro is presently negotiating with several pharmaceutical companies with the objective of signing further technological transfers in other regions of the globe.