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Pharmaceutical industry

ALZA Corporation and U.S. Bioscience Announce Marketing Agreement for Ethyol(R)

Strategic Insights

— 1 min read

Palo Alto, California-based ALZA Corporation and U.S. Bioscience, Inc. have signed a marketing and distribution agreement for Ethyol(R), a cytoprotective agent for reducing kidney toxicity associated with chemotherapy. The agreement grants ALZA exclusive marketing rights in the United States for five years, with an option to extend for an additional year. Under the agreement, U.S. Bioscience will retain full continuity with the product, maintaining clinical development and co-promotion activities in cooperation with ALZA.

Key Takeaways:

  • ALZA Corporation and U.S. Bioscience have signed a marketing agreement for Ethyol(R), a cytoprotective agent for kidney toxicity associated with chemotherapy.
  • The agreement grants ALZA exclusive marketing rights in the United States for five years, with an option to extend for an additional year.
  • U.S. Bioscience will retain full continuity with the product, maintaining clinical development and co-promotion activities in cooperation with ALZA.
  • ALZA will be responsible for sales and marketing, while U.S. Bioscience will co-promote the product.
  • ALZA expects to launch the product in early 1996 and will pay U.S. Bioscience an up-front payment of $20 million.
  • The agreement also includes a provision for ALZA to pay $15 million in additional distribution fees to U.S. Bioscience based on U.S. Bioscience's clinical activities relating to Ethyol.
  • Ethyol is the first agent to reduce kidney toxicities associated with cisplatin while not compromising chemotherapy activity on tumor cells.
  • U.S. Bioscience plans to undertake additional clinical studies to test the product for new indications.
  • ALZA and U.S. Bioscience have a history of collaboration, including a previous arrangement with Shering-Plough Corporation in Europe.

Statistics:

  • December 8, 1995: Ethyol was cleared for marketing in the United States by the Food and Drug Administration.
  • December 13, 1995: ALZA Corporation and U.S. Bioscience announced the signing of the marketing agreement.
  • 1996: ALZA expects to launch the product.
  • $20 million: Up-front payment made by ALZA to U.S. Bioscience.
  • $15 million: Additional distribution fees to be paid by ALZA to U.S. Bioscience.
  • 5 years: Length of the exclusive marketing agreement.
  • 10 years: Duration of the payment arrangement between ALZA and U.S. Bioscience.

Sources:

  • BUSINESS WIRE, Dec. 13, 1995
  • ALZA Corporation press release, Dec. 13, 1995
  • U.S. Bioscience press release, Dec. 13, 1995
  • Food and Drug Administration, Dec. 8, 1995

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