Sanofi-Aventis pulls out of deal with AEterna Zentaris on Cetrorelix in benign prostatic hyperplasia

French drug major Sanofi-Aventis has pulled out of its deal with Canada's AEterna Zentaris for the development, commercialization and licensing of cetrorelix in benign prostatic hyperplasia (BPH) for the US market. The decision follows the announcement last week of the results for its European Phase III study for cetrorelix in BPH, which failed to meet the trial's primary endpoint. Termination of the agreement will be effective January 9, 2010.

Under the terms of the original deal, Sanofi-Aventis paid an initial $30 million upfront to AEterna Zentaris, and was liable to pay up to $135.0 million in additional payments on achieving certain pre-established regulatory and commercial milestones (The Pharma Letter March 16). Furthermore, AEterna Zentaris would have been entitled to receive escalating double-digit royalties on future net sales of cetrorelix for BPH in the USA.

Canadian firm will now focus on late-stage compounds