Watson, Richter enter licensing agreement for Esmya

MORRISTOWN, N.J. — A subsidiary of Watson Pharmaceuticals has entered a licensing agreement with a subsidiary of Hungarian drug maker Richter to develop and market a drug for uterine fibroids, the two companies said Thursday.

Watson Labs and PregLem said European studies had shown Esmya (ulipristal acetate) to be a safe and effective treatment for the disease, a benign tumor condition that affects between one-fifth and one-fourth of women of reproductive age worldwide. Watson expected to start phase-3 studies of the drug in the United States in 2011.

Under the agreement, Watson will pay PregLem $17 million plus royalties based on U.S. and Canadian sales, as well as milestone payments. The companies also will collaborate on additional formulations of the drug, sharing development costs.

“Esmya represents a significant strategic addition to our portfolio of women’s health products and is potentially the first effective treatment for uterine fibroids in more than 20 years,” Watson CEO Paul Bisaro said.

Recommended stories

Login or Register to post a comment.