NEW YORK (Reuters) - Pfizer Inc (PFE.N) will pay $75 million upfront and up to another $410 million for the rights to develop and market Auxilium Pharmaceuticals AUXL.O experimental drug Xiaflex, both companies said in a statement on Wednesday.
The drug treats penile curvature and the growth of hard tissue in the hand, the companies said.
The $410 million sum includes up to $150 million New York-based Pfizer would pay if the drug reaches regulatory milestones, and another $260 million linked to reaching sales milestones.
The deal will give Pfizer marketing rights to the drug, Xiaflex, in 46 European and Asian markets, and Pfizer will be responsible for regulatory activities in those countries.
Xiaflex is an experimental drug that has completed Phase III trials for the hand condition, called Dupuytren’s contracture, and is undergoing Phase IIb trials for Peyronie’s disease, the curvature of the penis.
Both conditions stem from the build-up of scar tissue. Xiaflex, an injectible drug, is also in the early stage trials for another disease called Frozen Shoulder syndrome.
Pennsylvania-based Auxilium said in a statement it expects to file for approval for Duputryen’s with the U.S. Food and Drug Administration in early 2009, while Pfizer expects to file for European approval in 2010.
Reporting by Phil Wahba; Editing by Anshuman Daga