By: Zacks Equity Research
Teva had initially acquired exclusive rights to develop, register, manufacture and commercialize laquinimod worldwide, except for the Nordic and Baltic countries. As per the terms of the amended agreement, Teva will now have marketing and distribution rights in the Nordic and Baltic regions as well.
As a result of the amendment, Active Biotech is entitled to receive a higher royalty rate on sales in these regions compared to the royalty rate fixed in the original agreement that was signed in June 2004.
Laquinimod is the lead pipeline candidate at Teva. The phase III candidate received fast track designation in the U.S., which means that it could enter the market as early as late 2011, provided all goes well. Laquinimod is currently in two phase III studies – ALLEGRO and BRAVO – which are evaluating the efficacy, safety and tolerability of the candidate.
The multiple sclerosis (MS) market represents significant commercial potential. MS is the leading cause of neurological disability in young adults and it is estimated that more than 400,000 people in the US are affected by the disease. More than two million people may be affected worldwide.