Acorda reaches agreement to cover foreign sales of MS drug
Acorda Therapeutics Inc., a Hawthorne-based biotech company, announced an agreement to develop, commercialize and gain regulatory clearances for its new multiple sclerosis drug in foreign markets with the assistance of another biotech company.
Biogen Idec of Cambridge, Mass., will handle the marketing and regulatory approvals for the Fampridine-SR medication in foreign markets. Acorda said that it will receive an upfront payment of $110 million and additional payments of up to $400 million from Biogen based on the sales track record of the medication, which is designed to improve the walking ability of multiple sclerosis victims.
The agreement also calls for Biogen to make royalty payments to Acorda on foreign sales of Fampridine-SR.
Another drug company, Elan, will continue to manufacture Fampridine-SR, based on an existing agreement with Acorda.
Acorda is currently seeking approval for the medication in U.S. markets from the Food and Drug Administration. The drug is also eligible for a centralized regulatory review in Europe, potentially opening up huge new markets for the medication if it receives approval.
Acorda has been working on the development of the drug since the mid-1990s.
“Biogen Idec has outstanding capabilities in commercializing neurology and oncology products and is known globally for its reputation as an innovative leader in the field of multiple sclerosis,” Ron Cohen, president and chief executive officer of Acorda, said in a written statement. “We are delighted to be working with them to make Fampridine-SR, if approved, available to people living with MS in Europe, Canada, Australia and other areas of the world.”