Fosrenol, a drug for treating high phosphate levels in the blood in patients undergoing dialysis as a result of chronic kidney failure, has been approved in Germany. As a result, AnorMED(AOM) will receive a U.S.$3 million milestone payment from Shire Pharmaceuticals Group, plc (SHP), as indicated in the terms of agreement when AnorMED sold the global patent for Fosrenol to Shire.
The terms of agreement include:
- Shire agreed to pay AnorMED U.S.$18 million when FOSRENOL was approved in the United States and U.S.$7 million when FOSRENOL was approved in the relevant European countries. This agreement was also extended to include a U.S.$6 million payment to AnorMED upon regulatory approval in Japan.
- Shire's royalty obligations to AnorMED would cease throughout the world, in consideration of above payments
AnorMED has already received U.S.$19 million to date, upon U.S. and E.U. approvals.
Source: AnorMedIn addition to the U.S.$3 million milestone payment on German approval, the Company is eligible to receive a further U.S.$3 million milestone payment upon the first approval in one of four additional specified E.U. countries and a U.S.$6 million payment to AnorMED upon regulatory approval in Japan.
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