ProStrakan chemo treatment set to net £3m

Published on Tuesday 14 August 2007 12:19

A NEW treatment to help minimise some of the side-effects of chemotherapy could be set to net a Scottish pharmaceutical firm up to £3 million.

Galashiels-based ProStrakan has created the product, called Sancuso, which works in a similar way to a nicotine patch for smokers. The patch filters a drug into the patient's bloodstream to help prevent nausea and vomiting - two of the most common side-effects of chemotherapy.

The firm today confirmed it has agreed an exclusive distribution agreement with LG Life Sciences to allow distribution rights in South Korea. Under the terms of the agreement, ProStrakan will receive "upfront" and "milestone" payments worth up to 3m, subject to the patches licensed in various countries and undisclosed sales targets being met.

It is part of a global roll-out of the product by the company. It has already submitted a new drug application to the United States Food and Drug Administration and a marketing authorisation application across Europe.

ProStrakan is using the strategy of "outlicensing" its products in markets where it does not have an existing sales team.

It is hoping the deal will open up a market to which it previously did not have access. Dr Wilson Totten, ProStrakan's chief executive, said: "In addition to building our own sales forces, we are growing a meaningful revenue stream from outlicensing our product portfolio in markets where we do not intend to build a direct commercial presence.

"Our partnership with LG Life Sciences is another clear example of this, capitalising on the global value of Sancuso, our latest product to reach the registration stage.

"In LGLS we have a recognised partner who will work with us to commercialise Sancuso in South Korea - an important and dynamic market - and help us establish this product as a valuable treatment for chemotherapy patients at risk of nausea and vomiting."

In an update ahead of interim results due next month, ProStrakan said last month that revenues had grown by 28 per cent.

It also recently sealed a deal to see its testosterone treatment Tostran and Rectogesic, which treats chronic anal fissures, distributed in Italy.

The firm's commercial director, Callum Spreng, believes the new drug will become an important treatment for chemotherapy patients. He said: "At the moment, people can be prescribed granisetron, but it has to be taken orally or through injections.

"The patch is a much more patient-friendly treatment. If someone is sick there is the chance that they may throw something back up (if taken orally). This takes away that problem."

Sancuso has not yet received approval in the UK or US and is not expected to get the go-ahead until at least 2008.

But even if it gets approval it may not be instantly available to patients. Mr Spreng said: "As ever, with prescription drugs it is down to doctors to decide if it is appropriate for individual patients. But we are very hopeful that the drug will be a success."