BioSpecifics Tech buys down royalties for Peyronie's disease

New York State, USA-headquartered BioSpecifics Technologies, which is developing first-in-class collagenase-based products, says that it has signed an agreement to significantly improve the deal terms related to its payments for Peyronie's disease by buying down its future royalty obligations with a one-time cash payment.

BioSpecifics has modified its previously-announced deal to lower future royalties payable on net sales of its injectable collagenase, Xiaflex, for Peyronie's disease. The company has taken this strategic step because of the imminent initiation of the Phase IIb clinical trial, lack of currently-available, desirable therapeutic options for Peyronie's patients, the strong commitment of the company's partner, Auxilium Pharmaceuticals, to pursue the development for this clinical indication and the results of the three separate positive clinical trials published to date.

BioSpecifics has previously announced that its third-party royalty obligations for Dupuytren's disease are 0.5% of net sales. Auxilium is obligated to pay low double-digit royalties at a flat rate as a percentage of future worldwide net sales for all clinical indications, irrespective of territory, and independent of sales volume. BioSpecifics will also receive a percentage of non-royalty payments (upfront, milestones, etc) if Auxilium sub-licenses the marketing rights to a third party. In addition, it will receive a certain percentage mark-up on the price of goods based on Auxilium's manufacturing costs.