Paladin Labs Inc, a leading Canadian specialty pharmaceutical company, announced it is signing an agreement with GlaxoSmithKline Inc (GSK) and Glaxo Group Limited that appoints Paladin Labs Inc as the exclusive distributor of Dexedrine (dextroamphetamine sulfate) within Canada for a period of three years, with an option for Paladin to purchase all remaining rights to the product in Canada at the end of that period.
GSK will be providing certain distribution support services for an interim period. The agreement also marks the start of a strategic relationship with GSK whereby Paladin Labs Inc will have the first right to partner with GSK on a number of products that GSK may choose to license or divest in Canada. Financial terms of the transaction were not disclosed.
Dexedrine is indicated for the treatment of attention deficit hyperactivity disorder (ADHD) and in the adjunctive treatment of narcolepsy. According to IMS Canada, the ADHD market in Canada was valued at about $120 million in 2007 and Dexedrine recorded sales of over $14 million in the same year, representing a market share of 12 per cent and making it the third largest product in this category.
"This agreement will allow us to add to our portfolio of specialty pharmaceutical products and to build significant critical mass for our organization. Not only will we be adding close to $14 million to our top line next year, but just as importantly, we are establishing a strategic relationship with GSK for potential future transactions like this one," said Jonathan Ross Goodman, president and CEO of Paladin Labs Inc. "We are very pleased to establish this preferred partner relationship with Paladin owing to their clear history of success in commercializing products like Dexedrine and their record of building win-win relationships with partners," said Paul Lucas, president and CEO of GSK. "Dexedrine has a long history of efficacy and safety in improving the lives of Canadians suffering from ADHD and narcolepsy. In the very capable hands of Paladin, we are confident that it will continue to meet the needs of Canadian patients and their healthcare providers."
Paladin Labs, headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian market.