Auxilium gains rights to Vivus ED drug for USA and Canada

Auxilium Pharmaceuticals (Nasdaq: AUXL) has signed an agreement with fellow USA-based Vivus (Nasdaq: VVUS) providing Auxilium with the exclusive right to market Vivus’ erectile dysfunction (ED) product Stendra (avanafil) in the USA and Canada.

The parties also simultaneously signed a commercial supply agreement pursuant to which Vivus will be initially responsible for the manufacture and supply of Stendra, which is already approved by the Food and Drug Administration.

Under the license, Auxilium will pay Vivus a one-time license fee of $30 million. Auxilium may make a $15 million regulatory milestone payment to VIVUS if the FDA approves the Stendra label to reflect a 15 minute or less onset of action efficacy claim and up to $255 million in potential milestone payments based on the achievement of certain sales targets. Vivus will also receive royalties on product sales.