The relationship between Draxis Health radiopharmaceutical subsidiary DraxImage and marketing partner Cytogen appears to be falling apart.
Cytogen said yesterday that it has provided DraxImage with a notice of termination for its license and distribution agreement and manufacturing and supply agreement for DraxImage's BrachySeed I-125 and BrachySeed Pd-103 products. The two firms had signed a 10-year agreement in December 2000, granting Cytogen U.S. marketing and distributing rights to Draxis' BrachySeed iodine and palladium implants for prostate cancer treatment.
Princeton, NJ-based Cytogen said it gave the notice due to Draxis' failure to consistently supply the BrachySeed products at quantities, activity levels, and schedules amenable to commercial sale. These factors negatively impacted Cytogen's ability to market those products, Cytogen said.
For its part, DraxImage of Kirkland, Quebec, has informed Cytogen that it would end its exclusive U.S. marketing and distribution rights to BrachySeed implants, due to Cytogen's continued failure to meet minimum annual sales requirements. Cytogen would retain non-exclusive distribution rights, according to DraxImage. DraxImage also said it disputes and does not accept Cytogen's notice of termination for the agreements between the companies.
In the meantime, DraxImage said it has provided U.S. BrachySeed I-125 customers with toll-free access to its customer service department, which is responsible for worldwide order-taking and support of its radiopharmaceutical products.
By AuntMinnie.com staff writersJanuary 28, 2003
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