Sinclair Pharma plc, the international specialty pharma company, announces two separate product development and commercialization deals with BMG Pharma, a privately-owned US-based company. The deals present Sinclair with significant pipeline development opportunities and new product assets. Out-licensing early stage gynaecology technologies Under the terms of the first agreement, Sinclair has out-licensed a range of early stage gynaecology technologies (the OBGYN Products) to BMG Pharma. The transaction, which was signed in H1 2009, is valued at €3.5million to Sinclair and is recognised as revenue.
BMG will develop and register Sinclair's products targeting a range of indications that affect women from the age of adolescence through to menopause, such as vulvo-vaginal infections and pregnancy support care.
BMG will fund the development and registration of the suite of products and retain the right to distribute the products across North and South America, paying a royalty to Sinclair. In return, Sinclair will own the distribution rights for the rest of the world with a reciprocal royalty arrangement. In addition, BMG will transfer to Sinclair the marketing rights to a range of its proprietary products, which are anticipated to complete development during the next three years.
Sinclair will own the commercial rights worldwide excluding North and South America. This range includes products for the treatment of interstitial cystitis, genital warts and anal and nipple fissures. The development of these products will also be completed and funded by BMG. Sinclair will pay BMG a reciprocal royalty on sales. Sinclair in-licenses anti-infection products in second BMG deal Sinclair also announces that it has separately entered into an agreement with BMG Pharma to in-license a range of skin anti-infection products (the Skin Care Products).
Under the terms of this agreement, BMG will license to Sinclair the products and patented technology for a range of skin care products including creams, lotions, foams and cleansers. These products include silver incorporated into nanospheres. Silver nanotechnology is designed to provide enhanced and stabilised antimicrobial activity, rapidly killing most of the organisms associated with skin infections. The global market value for anti-infective skin products is estimated to be in excess of $3.5 billion per annum. Sinclair and BMG anticipate that the first products arising from this agreement will be available on the market within one to two years.
The Skin Care Products are valued at €4.1 million. The balance between the two separate agreements of €0.6 million is payable by Sinclair to BMG in instalments, of which a small part will fall in this financial year and the balance in the next financial year.
William Goolsbee, CEO of BMG Pharma, said, "This agreement with Sinclair is highly complementary for BMG. It will bring together a combined set of products for well characterized but still underserved segments of the Women's Health market. Further to this our patented silver nanotechnology will benefit from Sinclair's dermatological expertise and leadership in its commercialisation. We expect the first of these products to become available to the market in 2010, with continued rollouts through to at least 2012 with increasingly important products."
Dr Michael Flynn, CEO of Sinclair Pharma, said, "This innovative, mutually beneficial collaboration with BMG Pharma will present Sinclair with significant opportunities over the next few years. We are delighted to be able to both acquire a range of products to further complement our portfolio (the Skin Care Products) and arrange for a well-funded and respected company to fund the development of our pipeline, producing a range of gynaecological products for commercialization that extend Sinclair's patented technologies into therapeutic fields outside of dermatology and oral health."
"This unique commercial arrangement enables Sinclair to broaden its portfolio and further develop the pipeline without using significant cash resources, allowing Sinclair to continue building revenues and profits from its existing dermatology and oral health portfolio," Dr Flynn added.
Sinclair Pharma plc is an international specialty pharmaceutical company. It has a growing sales and marketing operation that is already present in France, Italy, UK, Spain and Portugal, and a complementary marketing partner network that spans more than 80 countries.
BMG Pharma is a private medical products company located in Gardnerville, Nevada, USA. The company's focus is on the exploration, development and regulatory approval of specialty products serving markets including women's health, dermatology and diseases of the mucosa.