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Valeant, Glaxo to share profit from drug

August 29, 2008|From Bloomberg News

GlaxoSmithKline will pay Valeant Pharmaceuticals International as much as $820 million and a share of profit from the experimental epilepsy drug retigabine.

Glaxo, based in London, and Valeant, based in Aliso Viejo, next year will seek U.S. and European approval to begin selling the drug, the companies said in a statement Thursday. Glaxo will pay $125 million now and as much as $695 million later as Valeant reaches development and regulatory goals. The companies also will split profit in the U.S., Canada, Australia, New Zealand and Puerto Rico, and Valeant will receive a 20% royalty on sales in the rest of the world.

Retigabine is the first epilepsy drug known as a neuronal potassium channel opener and was found safe and effective in treating the disorder's seizures in two human trials that will be used to support government approval, the companies said. About a third of epilepsy patients experience seizures despite taking other medicine to control them, said Steve Stefano, Glaxo's senior vice president for the company's U.S. neurohealth division.

Valeant shares fell $1.28 to $18.82.

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