Onxeo Divests Two Non-Core Products in Oral Pathologies to Vectans Pharma
Transaction confirms Onxeo's strategic focus on innovative orphan oncology drugs
Paris (France), July 31, 2017 – 05:45 pm CEST – Onxeo S.A. (Euronext Paris, NASDAQ Copenhagen: ONXEO), ("Onxeo" or the "Company"), a clinical-stage biotechnology company specializing in the development of innovative drugs for the treatment of orphan diseases, in particular in oncology, today announced the sale of two historical products Sitavig® and Loramyc®[1] to Vectans Pharma, a private pharmaceutical company which develops and markets innovative therapeutics in oral pathologies.
Under this agreement, Onxeo will assign to Vectans Pharma all assets relating to the two products – notably patents, regulatory authorizations and outstanding contracts – and will receive an upfront payment of €4 million, as well as a potential earn-out payment based on the cumulated worldwide commercial performance of the products.
In addition, Onxeo will receive most of the expected milestone payments from existing partners, related to predefined regulatory or commercial performance events expected over the next 3 years.
Sitavig® and Loramyc are the two first products developed and registered in Europe and the US by Onxeo R&D teams for the treatment of labial herpes and oropharyngeal candidiasis respectively. These products have already been licensed to several international distributors and have reached various development stages depending on the country, from ongoing registration activities to market authorization and commercialization.
"We are extremely pleased with this transaction as these products constitute a solid foundation to build our portfolio of innovative specialty products in oral pathologies upon," stated Jean Theron, President of Vectans Pharma. Loramyc® and Sitavig® represent valuable assets that address patients' needs in two oral diseases for which these convenient products bring significant advantages".
While these two products, commercialized or under approval in several key countries around the world, illustrate Onxeo's undeniable development experience and skills, they are no longer at the heart of the Company's strategy dedicated to the development of innovative drugs in orphan oncology. Vectans Pharma, in turn, specializes in commercialization of drugs for oral pathologies, and is therefore ideally positioned to harvest the full potential of these products.
"This transaction marks the completion of our Company's strategic transformation initiated few years ago focusing on innovative orphan oncology drugs development. We will now be able to concentrate all our resources on the development of our diversified product pipeline in this high-potential therapeutic area." concluded Judith Greciet, Chief Executive Officer of Onxeo.
For this transaction, Onxeo was advised by the Altana Law Firm, represented by Jean-Nicolas Soret (partner), Fabien Pouchot (counsel) and Vincent Guilaine (associate). Vectans Pharma was advised by Raphael Financial Advisory represented by Benoit Perrin d'Arloz and by the Almain Law Firm represented by Edgard Nguyen (partner).