Merck Serono, Theratechnologies ink $215M deal

Merck Serono has signed a deal to license the U.S. commercialization right to tesamorelin, a drug to treat excess abdominal fat in HIV patients with lipodystrophy. Theratechnologies retains rights to the drug outside the U.S. Under the terms of the agreement, the company will receive an upfront payment of $30 million and up to $215 million in additional payments for the drug. Theratechnologies will be responsible for conducting research and development for additional indications.

Back in January, Theratechnologies said it was conducting a strategic review of its options, including selling the company. The deal gives the company an influx of cash that will allow it to explore other indications for the drug. "These milestone and royalty payments provide Theratechnologies with a fully-financed business plan through the commercialization of tesamorelin for its first indication in the US. Theratechnologies will also have the financial flexibility to pursue the development of a second indication and build the long term value of the compound," noted Mr. Luc Tanguay, Senior Executive Vice President and CFO of Theratechnologies.

- see the release for more