U.S. Bioscience Inc. (UBS) on Tuesday announced a 10-year, $10million agreement with Schering-Plough Corp., coveringmarketing in Europe of Ethyol, a drug designed to protectcancer patients from side effects of chemotherapy andradiation treatment.
Schering-Plough will have exclusive rights to market the drugin Western Europe for five years, then share sales forces fortwo years, and finally relinquish sales in this market in theseventh year to UBS, said Robert Kriebel, senior vice presidentof finance and administration at UBS.
"We're looking to develop a worldwide presence," Kriebel toldBioWorld following his presentation at the Alex. Brown & Sons18th Annual Health Care Seminar in Baltimore. However, sinceSchering-Plough has "250 marketing people in Europe andwe've got zero," he said UBS chose to concentrate on the U.S.and gradually co-promote the product.
"They're getting a good product and we're getting a goodpartner," he said.
Schering (NYSE:SGP) will pay UBS (ASE:UBS) up-front andmilestone payments totaling up to $10 million as regulatoryand pricing approvals are obtained. UBS also will receive ashare of operating profits from product sales in the countriesthat comprise the European Community and European FreeTrade Association and some Scandinavian countries. Afterassuming sole marketing rights, UBS will pay Schering a portionof its operating profits in Europe for three years.
UBS, an oncology pharmaceutical company based in WestConshohocken, Pa., will handle manufacture of this non-biotechnology therapy and its registration.
An FDA advisory panel in February 1992 refused torecommend Ethyol (amifostine) approval in the U.S., and FDArequested additional data. UBS filed for marketing approval forEthyol in Europe in September 1992.
The company plans to amend its new drug application (NDA) inthe U.S. to include data on the final 80 patients of a 200-patientpivotal trial, Kriebel said.
Ethyol is meant to protect bone marrow and other normalorgans and tissues from damage from chemotherapy andradiation, permitting higher doses of cancer treatments.
Schering of Madison, N.J., received marketing rights to Ethyoland four other anti-cancer products in March 1992 in anumber of Latin American and Far East countries.
Kriebel said SmithKline Beecham plc has marketing rights toEthyol in Japan, where approval could take longer because thegovernment requires local clinical trials.
UBS's stock was up 88 cents a share on Tuesday, closing at$9.25.
-- Nancy Garcia Associate Editor
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