Auxilium and Actelion partner on Xiaflex

USA-based Auxilium Pharmaceuticals (Nasdaq: AUXL) and Switzerland’s Actelion (SIX: ATLN), Europe’s largest biotech firm, have entered into a long-term partnership for the development, supply and commercialization of Xiaflex (collagenase clostridium histolyticum), a novel, first-in-class biologic for the potential treatment of Dupuytren's contracture and Peyronie's disease, worth a potential $68.5 million to the US firm.

Under the terms of the agreement, Actelion will pay Auxilium $10 million up front and will also make up to $16 million in potential regulatory, pricing and reimbursement milestone payments and $42.5 million in potential sales milestones. Auxilium will also receive increasing tiered double-digit royalties based on sales of Xiaflex in Actelion's territories and will supply product to Actelion at a predetermined cost.

In return, Actelion will receive exclusive rights to commercialize Xiaflex for the treatment of Dupuytren's contracture and Peyronie's disease in Canada, Australia, Brazil and Mexico on receipt of the respective regulatory approvals. Actelion will be primarily responsible for the applicable regulatory and commercialization activities for Xiaflex in these countries.