The Cross-Border Biotech Blog

Biotechnology, Health and Business in Canada, the United States and Worldwide

Tag Archives: collaboration and license agreement

Canadian Biotech and Healthcare Licensing Trends in 2010

I was fortunate this week to host the Canadian Healthcare Licensing Association‘s (CHLA’s) annual holiday get-together on behalf of Ogilvy Renault at our Toronto office (we hosted a parallel CHLA event in Montreal earlier this week). I presented a short slide deck on licensing trends in 2010, with data drawn from our Monday Biotech Deal Reviews and from Wayne Schnarr’s quarterly reports. For your viewing enjoyment,the slideshare version is below. You can also download a pdf of the presentation here.

Cardiome Licenses Vernakalant (Oral) to Merck

Merck & Co., Inc. and Cardiome Pharma Corp. announced a collaboration and license agreement that provides Merck with exclusive global rights to the oral formulation of vernakalant for the maintenance of normal heart rhythm in patients with atrial fibrillation.

Here’s the deal:

  • US$60 million upfront
  • up to US$200 million in development and approval milestones
  • up to US$100 million for approval and subsequent indication milestones
  • tiered royalty payments
  • and up to US$340 million in sales threshold milestone payments
  • Cardiome retains a U.S. co-promotion right
  • Merck will be responsible for all future costs associated with the development, manufacturing and commercialization
  • Merck has granted Cardiome a secured, interest-bearing credit facility of up to US$100 million that Cardiome may access in tranches over several years commencing in 2010.

Cardiome and Astellas Pharma U.S., Inc. have a deal for vernakalant (IV) in the United States, Canada and Mexico; and this deal provides a Merck affiliate, Merck Sharp & Dohme (Switzerland) GmbH, with exclusive rights to the IV formulation outside of the United States, Canada and Mexico.

Effectiveness is subject to the HSR clearance, as well as other customary closing conditions.

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