Supplier News Breaks Archives
Pozen to sell Vimovo U.S. rights to Horizon
November 20th, 2013
CHAPEL HILL, N.C. – Horizon Pharma USA Inc. plans to acquire the U.S. rights for Vimovo (naproxen and esomeprazole magnesium) delayed-release tablets from Pozen Inc.
Pozen said Tuesday that under its agreement with AstraZeneca AB and Horizon Pharma USA, Horizon will acquire the U.S. rights for Vimovo, with Pozen continuing to receive a 10% royalty on net sales of products sold in the United States.
The deal also guarantees annual minimum royalty payments of $5 million in 2014 and $7.5 million each year thereafter, provided that the patents owned by Pozen that cover Vimovo are in effect and no generic forms of Vimovo are on the market, according to Pozen.
Also under the agreement, Horizon has assumed AstraZeneca's right to lead the ongoing Paragraph IV litigation for Vimovo and will assume all patent-related defense costs relating to such litigation, including reimbursement for a specified amount of the cost of counsel retained by Pozen.
AstraZeneca will continue to have rights to commercialize Vimovo outside of the United States.
"We are very pleased that Horizon will take over the sales and marketing of Vimovo in the United States," stated John Plachetka, chairman, president and chief executive officer of Pozen. "As evidenced by their experience in the osteoarthritis market, we believe that the management team and the employees of Horizon are uniquely qualified to significantly increase sales of Vimovo. We also extend our gratitude to AstraZeneca for their role in making this transaction possible, and for their continuing efforts to maximize the commercial potential of Vimovo outside the U.S."