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Avanir Pharmaceuticals, Inc. Message Board

  • steveprofes steveprofes Feb 24, 2013 8:49 PM Flag

    Abreva Royalties

    if they expire this year, what will the new terms be? does GSK get the whole ball of wax or is their a final lump sum payment?

    Sentiment: Strong Buy

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    • Hello Steve – I’m fairly certain Onlyfacts has it right.

      GSK have been working on a replacement for several years and took up a partnering arrangement with NanoBio back around July 2010.

      Next advance in the treatment of cold sores
      Strengthens a key OTC franchise
      NanoBio Corporation and GlaxoSmithKline plc (GSK) today announced an exclusive licensing agreement in the United States and Canada for the over-the-counter (OTC) use of NB-001, a novel, patented compound representing the next advance in the treatment of cold sores. Developed by NanoBio, NB-001 provides significant antimicrobial activity against the virus that causes cold sores, herpes labialis.
      Cold sores are a prevalent condition affecting approximately 20% of the adult population in the US.

      GSK has established Abreva® as the leading cold sore treatment with a greater than 50% share, gaining two share points in the prior 12 months. Abreva is the only OTC medicine approved by the US Food & Drug Administration that is proven to shorten cold sore healing time.

      NanoBio has completed two Phase 2 clinical trials of NB-001, demonstrating clear efficacy and a good safety profile in patients and plans to enter Phase 3 testing soon.
      Under the terms of the agreement, NanoBio will receive an upfront payment of $14.5 million, and is eligible to receive additional milestone payments of up to $40 million plus single digit royalties on future sales.

      Two large Phase 3 clinical studies were initiated in the spring of 2011 with results expected in 2012 I have not followed up on it lately.

      Which ever way I look at it Abreva has served us well, right up to the last.

      Sr Falconi

      Sentiment: Hold

    • My impression was the royalties for North American sales over $62 million, or something like that, just stops after December, 2013,