Under the terms of the agreement, Valeant will make an up-front payment to AstraZeneca of $100m, then pay additional pre-launch fees of up to $170m (depending on various targets being met) and further payments of up to $175m following launch depending on the level of sales success. After approval, AstraZeneca and Valeant will share profits.
Interestingly, Deutsche Bank - along with information services company IMS Health - has released data on the new injectable psoriasis drug Cosentyx from Swiss giant Novartis (NOVN). The group launched the product at the beginning of the year and the latest figures show it's a strong competitor with Stelara - the current market-leading psoriasis product from Johnson and Johnson. Clearly, Valeant and AstraZeneca believe that, together, they too can offer patients - and investors - an effective treatment for the debilitating skin condition.
