Anacor Pharmaceuticals (ANAC) is quickly allaying concerns about the launch of its recently approved antifungal, Kerydin (tavaborole) topical solution 5%, inking a commercialization deal this week with Sandoz subsidiary PharmaDerm, in which the larger company will be responsible for the sale and marketing of Kerydin in the U.S. The FDA approved Kerydin on July 8 (read more) for the topical treatment of onychomycosis, a fungal infection of the nail and nail bed.
Investors’ most significant concern following the approval was Anacor’s ability to go up against the marketing might of specialty pharma bigwig, Valeant Pharmaceuticals (VRX), which saw its own treatment for oncomychosis, Jublia (efincaconazole), approved in June.
Anacor will receive an upfront payment of $40 million from Sandoz, with another $25 million likely in January of 2015. Sandoz and Anacor will split gross profits accrued by Sandoz on sales of Kerydin, except that in 2015 Anacor will begin receiving payments only after Sandoz has accrued $50 million in gross profits. In 2016, Anacor is entitled to minimum profit-sharing payments of $45 million.
By including the $50 million 2015 threshold in the deal, Sandoz has essentially guaranteed that it will recoup the majority of its upfront outlay ($50 of $65 million) for Kerydin, barring a complete commercial flop. Anacor had cash and equivalents of $146.7 million at March 31.
