NexMed, Inc., a developer of products based on the NexACT drug delivery technology, announced that it has sold the US rights for its topical alprostadil erectile dysfunction treatment to partner, Warner Chilcott Company, Inc., (a subsidiary of Warner Chilcott, Ltd.

Under the terms of the agreement, NexMed has received an up-front payment of $2.5 million and is eligible to receive an additional payment of $2.5 million upon Warner Chilcott's receipt of a New Drug Application (NDA) approval from the US Food and Drug Administration. In addition, Warner Chilcott will pay a total of $350,000 for the manufacturing equipment for the product.

Vivian Liu, NexMed's chief executive officer commented, "We firmly believe that selling the US rights of the product to Warner Chilcott is in the best interest of NexMed given the significant expenditures necessary before resubmission of the NDA can take place. The cash infusion received, along with the significant reduction in expenditures that we have implemented, will help ensure the viability of NexMed and continued pipeline development during these challenging economic times."

NexMed, Inc. is leveraging its proprietary NexACT drug delivery technology to develop innovative topical pharmaceutical products that address unmet medical needs. NexMed's novel, onychomycosis treatment, licensed to Novartis, is currently in pivotal phase 3 trials in the US and Europe.