Galderma has signed an exclusive agreement to develop and commercialize proprietary Aganocide compounds from biopharmaceutical company NovaBay Pharmaceuticals Inc.
Excluding certain Asian markets, the otherwise global deal covers all major dermatological conditions, excluding onychomycosis (nail fungus) and orphan drug indications.
Under terms of the agreement, Galderma will pay NovaBay to $50 million upon achievement of certain development and regulatory milestones related to the acne and impetigo indications and future royalties on net sales of products. The two companies will also cooperate for additional dermatological products and indications. Furthermore, NovaBay will receive escalating double-digit royalties on net sales of products.
Galderma will be accountable for the development costs of the acne indication and others, except in Japan, and for the ongoing development program for impetigo, upon reaching a specified milestone. The company will also reimburse NovaBay for the use of its personnel in support of the partnership.
NovaBay keeps the right to co-market products resulting from the agreement in Japan. Also, NovaBay has retained all rights in other Asian markets outside Japan and has exclusive rights to promote the products developed under the agreement in hospitals and other healthcare institutions in North America.
