ProStrakan agrees refinancing and distribution deal with Paladin Labs

Scotland-based specialty drugmaker ProStrakan Group (LSE: PSK) and Canada’s Paladin Labs say that they plan to enter into a new strategic relationship in which Paladin will acquire, by way of assignment, ProStrakan’s existing secured debt facility, with the addition of certain conversion rights, and will be granted an exclusive licence to ProStrakan’s products for certain emerging territories.

This agreement builds on the relationship which already exists between the two companies under which Paladin currently has in-licensed the rights to distribute Abstral (fentanyl) for cancer pain and Sancuso (granisetron) for post-operative nausea and vomiting in Canada. The new deal broadens this existing partnership, with Paladin being granted exclusive licence to distribute all of ProStrakan’s products, including: Abstral, Sancuso, Rectogesic (glyceryl trinitrate), for chronic fissures and pain; Xomolix (droperidol), for post operative nausea and vomiting; and Tostran gel for testosterone deficiency, in certain specific territories for which ProStrakan does not already have distribution agreements. These territories include: Canada, Latin America, Sub-Saharan Africa and Israel.

Terms of the licence agreements are not being disclosed but equate to arm’s length commercial arrangements. In addition, during the term of the debt facility, Paladin will have the right to license any new products acquired or licensed by ProStrakan for those same territories and on the same terms and conditions.