Trimel and Endo agree on Natesto manufacturing and marketing collaboration

Trimel Biopharma, a subsidiary of Canada's Trimel Pharmaceuticals Corp (TSE: TRL), has signed an agreement with Endo International (Nasdaq: ENDP) to market Natesto (testosterone) in the USA and Mexico. Shares of Trimel leapt 28.3% to C$0.59 on the news.

This is the first and only Food and Drug Administration-approved testosterone nasal gel for replacement therapy in adults with hypogonadism. Trimel is eligible for payments of up to $165 million based on regulatory and sales milestones, in addition to the upfront $25 million fee and a prepaid inventory deposit of $5 million on closing the deal. Trimel will be responsible for manufacturing the drug and will receive a tiered supply price for the product. The closing of the agreement is subject to customary Hart-Scott-Rodino antitrust approval.

Tom Rossi, president and chief executive of Trimel, said: "We are delighted to announce this partnership agreement with Endo as it represents another significant achievement for our company and an opportunity to capture the value we have created in developing Natesto. Endo is a leader in the US men's health care and urology segments, making them the ideal partner for Natesto. We look forward to working with Endo as they prepare to launch this innovative and differentiated treatment option for patients suffering from low testosterone."