Video-capsule manufacturer Given Imaging and InScope have signed an 11-year exclusive sales representation and co-promotion agreement for a new Given capsule-endoscopy product designed to image the esophagus.
Under terms of the deal, InScope, a business division of Johnson & Johnson subsidiary Ethicon Endo-Surgery, will have exclusive rights to market Given Imaging's M2A Esophageal Capsule following clearance from the Food and Drug Administration.
The product is designed to extend Given's video-capsule platform into the esophagus for diagnosis of chronic gastro-esophageal reflux disorder (GERD). Given Imaging currently expects to release the product before year-end, according to the Yoqneam, Israel-based firm.
The transaction calls for Given Imaging to retain responsibility for regulatory approval, manufacturing, supply chain management, order invoicing and processing, collections, technical support, and onsite system service, while InScope is responsible for sales, marketing, and promotion, as well as efforts to establish reimbursement policies for the M2A Esophageal Capsule.
Given Imaging will receive a milestone payment from InScope of up to $10 million upon FDA approval for the new product. Additional payments of up to $40 million may be made by February 2007, contingent upon performance criteria achievable by both parties, according to Given Imaging.
The exclusive term of the agreement will continue for up to 11 years, followed by a four-year co-exclusive transition period with Given Imaging. The alliance will initially focus on the U.S. and may be expanded globally, excluding Japan, Given Imaging said.
By AuntMinnie.com staff writersMay 11, 2004
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