UK-based Sinclair Pharma has signed an agreement to sell the US distribution rights pertaining to Atopiclair cream and lotion, a non-steriodal treatment for atopic dermatits, to its US marketing partner Graceway.
Sinclair received an immediate payment of $3.1 million in cash in place of future royalties that it would have received under the existing agreement. This payment is equivalent to the royalties Sinclair would have anticipated to receive from Graceway over the next five years. This agreement relates only to the US and the patent remains the property of Sinclair.
In the agreement Graceway has also relinquished its right of first refusal for Sinclair's dermatology products for the US. This will provide an opportunity for Sinclair to seek new partners for its expanding line of dermatology products in North America, or where appropriate promote them itself.
Michael Flynn, CEO of Sinclair Pharma, said: "Recognizing the current market and economic environment prevalent in the US we believe this agreement enables us to optimize the value in one of our 10 leading products and provides us with a single cash payment. We believe we can make better use of the additional funds to grow the core business."