Home » News » 01/06 » Organon and Ligand end Avinza agreement

Organon and Ligand end Avinza agreement

Date published: 19/01/2006

Akzo Nobel's human healthcare business, Organon, and Ligand Pharmaceuticals have agreed to end their co-promotion agreement for Avinza. Rights to Avinza, the oral morphine sulfate extended-release capsules for patients with chronic moderate-to-severe pain, will now be returned to Ligand.

Although the date to end the agreement was set for January 1st, the two companies will continue to co-operate until the end of September this year. In this transition period Ligand will pay Organon 23 percent of Avinza net sales and will be responsible for the design and execution of all clinical, advertising and promotional expenses and activities.

Michael Novinski, Organon president, said: "This agreement aligns with Organon's strategic and financial interests today to better focus our resources on our current and future product portfolio. "At the same time, we remain committed to a smooth transition in the near term including continued sales calls and transition activities on Avinza. We look forward to its continuing success given our long-term financial interest to earn a return for our shareholders on our investments in Avinza over the past three years."

Under the termination agreement Ligand will pay Organon $14.75 million after a disagreement over co-promotion fees. Ligand will also pay $37.75 million for the early termination.

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