BioCentury
ARTICLE | Company News

InSite, Inspire deal

September 8, 2014 7:00 AM UTC

In June, Akorn Inc. (NASDAQ:AKRX, Lake Forest, Ill.) paid InSite $6 million in exchange for a lower royalty rate that it pays InSite on net sales of ophthalmic product AzaSite azithromycin in North America. Last year, Akorn acquired exclusive, North American rights to market AzaSite from Inspire, which licensed the rights from InSite in 2007. Merck & Co. Inc. (NYSE:MRK, Whitehouse Station, N.J.) acquired Inspire in 2011 (see BioCentury, April 11, 2011 & Nov. 25, 2013).

The previous royalty rate was 25% regardless of net sales. Effective April 1, the royalty rate became 8% on net sales less than $20 million, subject to an increase to 9% if Akorn enters into settlements with third parties seeking to launch generic versions of AzaSite; 12.5% on net sales greater than or equal to $20 million and less than or equal to $50 million; and 15% on net sales greater than $50 million. For annual net sales of AzaSite Xtra ( ISV-405), the royalty rate will be 12.5% on net sales less than $30 million and 15% on net sales greater than or equal to $30 million. ...