Dusa Pharmaceuticals, Inc. has entered into an exclusive marketing, distribution and supply agreement for certain Asian territories with Daewoong Pharmaceutical Co., Ltd., a market leader in prescription drugs in the region for dermatology. The agreement covers current and future uses of Dusa's proprietary Levulan Kerastick for photodynamic therapy (PDT) in dermatology.
The agreement, which has an initial term of ten years, (subject to earlier termination and extension provisions) will further expand the distribution of Levulan beyond the North, Central, and South American markets. Effective with the signing of the agreement, Daewoong will complete final integration and submission of regulatory data to the Korean Food and Drug Administration with subsequent approval and market launch expected in 2008. Daewoong will also prepare and file the regulatory applications in other countries in the territory subject to the terms of the Agreement.
Robert Doman, DUSA's president and COO, stated, "We are excited to be working with Daewoong as Dusa continues its strategy for global expansion of its Levulan PDT franchise. Daewoong's significant presence in the market puts it in an ideal position to maximize the market opportunity for Levulan PDT particularly in Korea where there is significant physician interest in PDT. The next step in our business strategy in gaining worldwide distribution of Levulan PDT is to establish a partnership for the European marketplace."
Daewoong will make up to $3,500,000 in milestone payments, based upon contract execution, approval of the product from regulatory authorities, and achievement of pre-determined cumulative sales targets in the territory, subject to certain terms and conditions. In order to maintain exclusivity Daewoong is responsible for minimum purchase requirements. Dusa will manufacture the Kerastick for Daewoong at its state of the art manufacturing facility in Wilmington, MA.