Novartis' Sandoz unit entered an agreement to commercialise Adamis Pharmaceuticals' epinephrine auto-injector Symjepi in the US for the emergency treatment of type 1 allergic reactions, the latter company reported. Under the deal, Sandoz will make an upfront payment to Adamis, with the latter eligible to receive performance-based milestones payments and an equal share of net profits.
Symjepi gained FDA approval last year at a dose of 0.3 mg, while Sandoz will also gain rights to commercialise the 0.15 mg product, which is currently being assessed by the agency with a target review date of September 3. As part of the agreement, Adamis will retain the right to market both products in territories outside of the US, although Sandoz has the first right of negotiation for such territories.
Although Adamis didn't provide financial details of the agreement, CEO Dennis Carlo said the deal has "the potential to bring meaningful recurring revenue" to the company. In February, Carlo acknowledged that the company remained committed to finding a partner and launching Symjepi. "I know many investors have become frustrated with the time that this process has taken," Carlo noted at the time, adding that Adamis was in talks with two prospective partners.
The deal comes after the FDA recently added Mylan's EpiPen to its drug shortage list, noting at the time that the product has "intermittent supply constraints due to manufacturing delays from the manufacturing partner." At the same time, the regulator also disclosed that supplies of Impax Laboratories epinephrine auto-injector Adrenaclick are limited due to manufacturing issues.
H.C. Wainwright analyst Jason Kolbert suggested that the partnership puts Sandoz in a good place to compete against EpiPen as it has an established presence in the generic medicine segment, as well as "the manpower and experience" to challenge other similar products. Kolbert also noted that the equal sharing of profits came in above expectations that Sandoz would retain 70 percent. Shares in Adamis jumped as much as 58 percent on the news.
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