VER and Elan expand frovatriptan deal
Vernalis (LES:VER) and partner ELN expanded their marketing deal for VER's frovatriptan 5HT1B/1D agonist for migraine to include additional studies of the product and additional funding for VER. The companies plan to conduct additional post-marketing studies of frovatriptan, although the nature of the proposed studies was not disclosed. ELN holds a license to market frovatriptan in North America (see BioCentury, Oct. 12, 1998). Under the expanded deal, ELN will make a $10 million non-convertible, interest bearing term loan to VER. At its option, ELN may elect, within 30 days of U.S. marketing approval, to apply the full amount of the loan to buy out a proportion of the royalty due to VER on North American sales of frovatriptan. ELN also will buy 2 million VER shares at 248p per share. Frovatriptan received an approvable letter from the FDA in May, with final approval contingent on the submission of data from a preclinical study requested by the FDA (see BioCentury, May 8). ...