Triangle Pharmaceuticals Inc has reacquired from Abbott Laboratories full product rights, including rights to all profits, for four drug candidates in clinical development, including Coviracil (emtricitabine) for HIV.
"We have moved aggressively to reacquire full rights to our products not only because of our enthusiasm for the compounds but also because we believe this is a win-win outcome for Triangle and Abbott," said Chris Rallis, President and Chief Operating Officer of Triangle. "For Triangle, we believe that the reacquisition of the rights to Coviracil, amdoxovir and clevudine, all currently in clinical development, allows us to maximize the potential return on investment for the portfolio."
"The agreement with Triangle to end our alliance will enable Abbott to focus exclusively on our core areas of expertise and scientific success in HIV and hepatitis C research, which will include the delivery of a third-generation, breakthrough protease inhibitor and the discovery and development of effective therapies for hepatitis C, a disease with a high co-morbidity with HIV," said John Leonard, Vice President of Global Pharmaceutical Development of Abbott Laboratories.
Triangle and Abbott entered into a series of collaborative agreements in 1999 related to the development and commercialization of Triangle's products, including a profit-sharing arrangement whereby each company would receive roughly half of the profits from the sales of these products. Significant terms related to the reacquisition of rights include the following:
* Triangle reacquired all worldwide rights, which include the rights to all profits from the sale of its drug candidates, including Coviracil for the treatment of HIV and hepatitis B, amdoxovir for the treatment of HIV, and clevudine for the treatment of hepatitis B.
* Triangle will no longer be required to provide Abbott a right of first discussion on all future compounds which Triangle develops.
* Triangle will have access to two unsecured lines of credit totaling $42.5 million, subject to certain terms and conditions. Upon approval of Coviracil for the treatment of HIV in the United States, Abbott will make available to Triangle an unsecured line of credit of $30 million. Upon approval of Coviracil for the treatment of HIV in Europe, Abbott will make available to Triangle an unsecured line of credit of $12.5 million. The available lines of credit may be reduced by certain types of non-dilutive financing Triangle may receive from other parties.
* Under a new manufacturing and supply agreement, Abbott will manufacture initial launch quantities of Coviracil, expected to be sufficient for approximately the first year's sales, and will supply additional material through July 31, 2005, at Triangle's request. Abbott will also provide resources as needed to transfer the manufacturing process for Coviracil to a third-party manufacturer.
* In exchange for the above rights, Triangle will forego rights to all remaining milestone payments and the right to co-promote Abbott's HIV product, Kaletra, in the United States.
* Abbott will also receive a 1% royalty on the first $200 million of cumulative sales of Coviracil for the treatment of HIV.
* Abbott's representative on Triangle's Board of Directors will resign and Abbott's right to purchase additional Triangle shares will terminate.