MORRISTOWN, N.J., Dec. 21, 2011 /PRNewswire/ -- Actavis Group, the international generic pharmaceuticals company, today announced that its US subsidiary, Actavis Inc, has entered into a binding letter of intent (LOI) with QRxPharma Limited (ASX: QRX and OTCQX: QRXPY) to commercialize MoxDuo IR in the United States.
Under the terms of the LOI, Actavis gets exclusive rights to launch and market MoxDuo IR, a patented 3:2 ratio fixed dose combination of morphine and oxycodone for the $2.5 billion US acute pain market. The product launch in the US is expected in Q3 2012. Pre-launch preparations will begin immediately.
Claudio Albrecht, CEO Actavis:
"This partnership represents a major step in our strategy to further strengthen our position as one of the major players in the segment of pain management in the US. Furthermore, as this latest development highlights, Actavis is serious in its quest to be ahead of the changing generic pharmaceutical industry. In the future, there will not be such a clear difference between innovator and generic companies. The lines between the two models are blurring. The generics business as we know it today will be gone within the next 10 years."
Actavis intends for MoxDuo IR to be a flagship product in the Company's growing pain management franchise. This transaction builds on Actavis success with the currently marketed Kadian® Extended Release Morphine Sulfate capsules, and a broad array of generic scheduled narcotics offerings. Kadian® has been manufactured by the Company for 15 years and marketed by Actavis since 2008. The Company's analgesic sales force for its branded products will expand significantly and have MoxDuo IR as a primary focus in the US pain market.
Actavis' CEO for the US, Doug Boothe:
"Actavis Inc. is a company with deep experience and solid results in pain management. Building on the success of Kadian®, we believe the QRxPharma partnership offers significant opportunity to leverage the talent of our team to establish MoxDuo IR as a preferred option in the US acute pain marketplace. We believe MoxDuo IR has tremendous sales potential."
As one of the world's largest manufacturers of branded and generic opioids, Actavis may serve as a contract supplier for MoxDuo IR in the US market. Under the terms of the LOI, QRxPharma retains full flexibility to market MoxDuo IR outside the US.
Dr. John Holaday, Managing Director and CEO, QRxPharma:
"After analysis of several other licensing proposals, it was clear Actavis was the strategic choice for the Company. Their experience in the manufacturing, distribution, marketing and sales of both patented and generic opioid products enabled a partnership structure with QRxPharma that will accelerate revenues and maximise shareholder value."
The agreement also provides Actavis with an option for US marketing and sales rights of QRxPharma's chronic pain controlled release Dual-Opioid, MoxDuo® CR, as well as its hospital based intravenous formulation, MoxDuo® IV. The exercise of the option for MoxDuo CR by Actavis is contingent upon the achievement of certain sales milestones for MoxDuo IR. The option for MoxDuo IV will lapse on a date certain if not exercised by Actavis.
About Actavis Group
Actavis is one of the world's leading generic pharmaceutical companies specializing in the development, manufacture and sale of generic pharmaceuticals. The company has operations in 40 countries, with 10,000 employees. For further information on Actavis Group, please visit www.actavis.com.
QRxPharma Limited (ASX: QRX and OTCQX: QRXPY) is a commercial-stage specialty pharmaceutical company focused on the development and commercialisation of new treatments for pain management and central nervous system (CNS) disorders. Based on a development strategy that focuses on enhancing and expanding the clinical utility of currently marketed compounds, the Company's product portfolio includes both late and early stage clinical drug candidates with the potential for reduced risk, abbreviated development paths, and improved patient outcomes. The Company intends to co-promote its products in the U.S. and seeks strategic partnerships for worldwide markets. QRxPharma's lead product candidate, immediate release MoxDuo, now awaits approval by the US Food and Drug Administration (FDA). Additionally, the Company's clinical pipeline includes an intravenous (IV) and continuous release (CR) formulation of MoxDuo, as well as other pipeline technologies in the fields of pain management, neurodegenerative disease and venomics. For more information, visit www.qrxpharma.com.
Any statements contained in this press release that refer to Actavis' estimated or anticipated future results or future activities are forward-looking statements which reflect the Company's current analysis of existing trends, information and plans. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially depending on factors such as the availability of resources, the timing and effect of regulatory actions, the success of new products, the strength of competition, the success of research and development issues, unexpected contract breaches or terminations, exposure to product liability and other lawsuits, the effect of currency fluctuations and other factors.
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