Plethora, Shionogi deal

Shionogi's Sciele Pharma Inc. subsidiary acquired global rights to Plethora's PSD502. The topical analgesic spray containing lidocaine and prilocaine is in Phase III testing to treat premature ejaculation, with data expected next half and regulatory submissions for the EU and U.S. expected in 1H10. Sciele and Plethora will share development costs outside the U.S., and Sciele will be responsible for regulatory submissions. Plethora will receive $8.4 million up front, of which Plethora's debt holders Paul Capital Partners and ETV Capital S.A. will receive $4 million and £1 million ($1.6 million), respectively. Plethora also is eligible for royalties on ex-U.S. sales and milestones.

Additionally, Paul Capital will forgive Plethora's $39.4 million of indebtedness under a 2008 loan in exchange for a share of the upfront payments from Sciele and the right to receive EU royalties on PSD502. Paul Capital also has the right to receive a participation in payments from the development and commercialization of PSD510, a self injection formulation of vasoactive intestinal peptide (VIP) and phentolamine in Phase III testing to treat erectile dysfunction. Paul Capital also will acquire Plethora's Timm Medical Technologies Inc. medical device subsidiary for $1. The subsidiary markets medical devices, including the ErecAid vacuum erection device. ...