GlaxoSmithKline (GSK) and Medivir announced an exclusive agreement for the commercialisation of cold sore treatment, Xerclear (acyclovir and hydrocortisone) for non-prescription use (OTC) in key global markets. Xerclear is the first and only topical herpes labialis (cold sores) treatment clinically proven to help prevent cold sore lesions appearing.

Under the terms of the agreement, GSK gains exclusive rights to commercialise and distribute non-prescription Xerclear as part of the Zovirax franchise, across multiple markets, including Europe, Russia, Japan, India, Australia and New Zealand. The agreement excludes North and South America, China, South Korea and Israel.

GSK will assume responsibility for funding ongoing and future commercial development of Xerclear in all territories covered by the agreement. In addition to funding the commercial development of Xerclear, GSK will pay up to Euro 3 million in up-front and pre-launch milestones and up to double-digit royalties on sales to Medivir for the exclusive rights.

John Clarke, president, Consumer Healthcare GSK, said: “This alliance demonstrates GSK’s ongoing commitment to invest in and expand our OTC business. It will help strengthen our dermatology portfolio across multiple territories including several key emerging markets. ”

“We are pleased to have partnered Xerclear with GlaxoSmithKline Consumer Healthcare – one of the world’s largest OTC consumer healthcare products companies, said Ron Long, Medivir’s CEO, and concluded, “This represents a major step in the global commercialisation of our cold sore product."

Xerclear, a combination product of acyclovir and hydrocortisone - was granted marketing approval in 14 European countries in October 2009. Based on strong clinical data, Xerclear was given a unique label, which differentiates it from other topical cold sore products currently on the market.

Based on its world class expertise in protease and polymerase inhibition technology, Medivir develops drugs with primary focus on infectious diseases. Its objective is to become a sustainable and profitable speciality pharmaceutical company with a strong research base.