As reported in PBR yesterday, Penwest Pharmaceuticals and Alvogen inked a deal to develop and distribute Alvogen's complex generics using the Penwest TIMERx delivery technology. TIMERx is a extended release technology based on xanthum and locust beans. Penwest will receive milestone payments and royalties on new products as part of the deal.
Alvogen will be responsible for manufacturing, clinical trials, regulatory filings, sales and marketing of the new products. Alvogen is looking to create further value for its more complex and difficult to formulate generics by adding the TIMERx technology.
It is interesting to note that advances in the drug delivery was one specific area called out in the Qualifying Therapeutic Discovery Project Credit contained within the healthcare reform legislation. It is one are of emphasis to earn tax credits.
Seeking Alpha reported yesterday that Cephalon acquired Mepha AG to enter the generics segment. The deal was for approximately $615 M dollars. The deal is meant to reduce Cephalon's dependence on its top 3 CNS drugs which are nearing the end of their patent protection. Both Teva and Miles are expected to be strong competitors as these patents elapse. This move also gives Cephalon access to emerging American markets where it currently does not have a strong presence and is expected to double the size of the company's international business. The acquisition adds 120 products, sold in 50 countries and approximately CHF 400 M in 2009 revenue.
Posted by Bruce Lehr April 13th 2010.
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