Vivus Inc. had inked a deal with Auxilium Pharmaceuticals Inc. to market its erectile dysfunction drug in the US. The deal was signed after more than a year it was approved, said a report from Reuters. Vivus had been looking to find a US partner for the drug, Stendra, said the report. The deal was between Auxilium and Vivus was approved in April 2012. This was after Vivus directed its focus on the launch and marketing of Qsymia, a diet pill yet to live up to its expected sales.
The deal for Stendra was valued USD300 million. This would mean an advantage for Vivus as Auxilium had established sales network that already markets men's health products.
Auxilium would pay an upfront licensing fee of USD30 million and up to USD270 million in milestone payments. The deal was expected to add to the company's earnings in 2015.
According to Leerink Swann analyst Marko Kozul,"Possibly more important than the terms of this deal could be that this partnership demonstrates that the new (Vivus) management is capable of executing on partnership deals."
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