Schering, Epix Medical, and Mallinckrodt have announced a series of agreements covering Epix's MS-325 cardiovascular MRI blood pool agent, which is currently in phase III clinical trials. Schering of Berlin will pay $10 million in an up-front fee and $20 million in milestone payments for the exclusive rights to co-develop and sell MS-325 worldwide (excluding Japan).
As a result, Mallinckrodt will no longer be marketing the agent, formerly known as AngioMark, according to a Mallinckrodt spokesperson. Epix of Cambridge, MA, will assume responsibility for completing clinical trials and filing for Food and Drug Administration approval in the U.S., and Schering will lead clinical activities for the product outside the U.S.
Epix and Schering will split clinical development costs equally. Pursuant to a long-term supply contract, Mallinckrodt of St. Louis will assume responsibility for manufacturing MS-325 for clinical development and commercial use. Under the agreements, Epix and Schering will generally share equally in operating profits in the U.S., while Schering will pay Epix a royalty on gross profits in the rest of the world. Mallinckrodt also will share in profits from Epix and will profit from the manufacturing as well.
In another agreement, Schering and Epix have formed a strategic partnership to develop and commercialize MRI cardiovascular contrast agents. In addition to worldwide marketing rights (excluding Japan) for MS-325, Schering will have an option to develop and market an unspecified cardiovascular agent from Epix's product pipeline. Also, Epix will have an option to participate in the development and marketing of two Schering products currently in clinical trials, SHU555C and Gadomer-17.
The four work-in-progress agents covered by this agreement are intended to enhance MRI's ability to detect blockages in the cardiovascular system and provide a minimally invasive alternative to x-ray angiography, according to the firms. As part of the agreement, Schering will make a $20 million equity investment in Epix, at $17.98 per share.
By Erik L. Ridley
AuntMinnie.com staff writer
June 9, 2000
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