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Cephalon, Inc. (Nasdaq: CEPH) and Alkermes, Inc. (Nasdaq: ALKS) have entered into an agreement to develop and commercialize Vivitrex (naltrexone long-acting injection) in the United States. Vivitrex is an investigational drug in development by Alkermes for the treatment of alcohol dependence. Alkermes submitted a New Drug Application (NDA) for Vivitrex to the U.S. Food and Drug Administration (FDA) on March 31, 2005, which has been granted priority review.
Under the terms of the agreement, Cephalon will make an initial payment of $160 million cash to Alkermes and an additional $110 million cash payment if Vivitrex is approved by the FDA. Alkermes could receive up to an additional $220 million in milestone payments that are contingent on attainment of certain agreed-upon sales levels of Vivitrex.
In creating and building new markets for PROVIGIL, we have established a proven track record of launching and growing innovative products," said Frank Baldino, Jr., Ph.D., chairman and CEO of Cephalon. "We believe the characteristics of the alcohol dependence market parallel those we encountered when we first launched PROVIGIL to treat excessive sleepiness. We are pleased to add Vivitrex to our growing portfolio of products and look forward to a very successful partnership with Alkermes."
"We believe Cephalon brings the commercial capabilities and infrastructure required for a successful product launch, and we look forward to a productive partnership,"...