CollaGenex signs Oracea deal with MediGene

USA-based CollaGenex Pharmaceuticals has signed a license and supply agreement with Germany's MediGene AG for marketing rights to Oracea (doxycycline), the former's flagship dermatology product for the systemic treatment of rosacea, in the European Union, certain contiguous countries and Russia. MediGene is a developer of novel pharmaceuticals for the treatment of dermatology, cancer and certain autoimmune conditions.

Under the terms of the deal, MediGene receives the right to manufacture, register, market and sell Oracea in these markets, in exchange for which CollaGenex is entitled to an upfront fee of $5.0 million upon signing, as well as an additional $7.5 million in milestone payments on achieving certain annual sales thresholds. In addition, CollaGenex will receive a royalty of 12% of annual net sales up to $10.0 million and 15% of annual net sales in excess of that figure.

Colin Stewart, chief executive of CollaGenex, stated: "this partnership, with a company that shares many of our attributes, will allow us to access the market for prescription rosacea products in the EU and other specified countries. We believe that the total size of this market in these countries is approximately $100.0 million, and that MediGene is well-positioned to develop Oracea into a significant product within the total market."