Quintiles Transnational Corp. and Columbia Laboratories Inc announced an agreement to commercialize Columbia's portfolio of women's healthcare products in the United States. Under the terms of this agreement, Quintiles' commercialization unit, Innovex, will provide a dedicated team of 55 sales representatives on a three-year, fee-for-service basis, to commercialize the following products:
* Prochieve 8%, approved for progesterone supplementation or replacement as part of an Assisted Reproductive Technology (ART) treatment for infertile women with progesterone deficiency and secondary amenorrhea;
* Prochieve 4%, approved for secondary amenorrhea;
* Advantage-S, a spermicidal contraceptive;
* RepHresh Vaginal Gel, a feminine hygiene product.
In addition to providing overall direction to the commercialization program, Columbia will be responsible for distribution, regulatory and medical affairs, marketing and all product manufacturing. Columbia expects to launch these women's healthcare products commencing in the third quarter of 2002.
Quintiles' strategic investment group, PharmaBio Development, will invest $4.5 million, to be paid in four equal quarterly installments commencing third quarter 2002 in return for a 5% royalty on the net sales of Columbia's women's healthcare products in the United States for five years beginning in the first quarter of 2003. The royalty payments are subject to minimum and maximum amounts. PharmaBio also has purchased $5.5 million in Columbia stock at the current market price.
Columbia's President and Chief Executive Officer Fred Wilkinson, said: "This agreement gives us the immediate capability to initiate sales and marketing activities for our expanding line of women's healthcare products with efforts focused on targeted obstetricians and gynecologists in the United States. We're very pleased to be working with Innovex and their successful product promotion team, as well as PharmaBio, based upon their creative ability to support our commercialization plans. This joint relationship is an important step for Columbia towards establishing a growing revenue base and a future earnings stream."
Ron Wooten, President, PharmaBio Development, said the agreement with Columbia is another example "in which PharmaBio is able to work with customers to provide creative, strategic solutions to their needs. This is a new model for our industry, and we are finding real demand for our strategic and financial offerings in the marketplace. We are excited about supporting Columbia in their marketing efforts for Prochieve and other products to obstetricians and gynecologists."