BRIEF—Medivir and Shijiazhuang Yuanmai deal for Xerclear in China

Sweden-based infectious disease specialist Medivir has signed a licensing agreement for its Xerclear (acyclovir and hydrocortisone) for labial herpes with the Chinese company Shijiazhuang Yuanmai Biotechnology (SYB).

The agreement gives SYB the right to register, manufacture and market the product in China.

After market registration and production in China, Medivir will receive an undisclosed fixed royalty for each unit sold and the agreement guarantees a minimum sale during the first three years on the market amounting to single-digit million amounts in Swedish kronorr.

“It is gratifying that we have succeeded in entering into a good licensing agreement with a Chinese company regarding production and sales of Xerclear in China," said Dr Christina Herder, Head of Business Development of Medivir.

In 2009, Xerclear (also called Zoviduo)) was approved for the treatment of labial herpes.

The marketing rights to Xerclear in the USA, Canada and Mexico were divested in 2010, while the corresponding rights in Europe and the rest of the world have been out-licensed to GlaxoSmithKline, with the exception of China and South America where Medivir has retained the rights.

Medivir receives royalties on sales of Zoviduo from GlaxoSmithKline.

In addition, Medivir would receive milestones when Zoviduo is approved as an over the counter product in certain European markets.