Vernalis buys US rights of Moxatag from Pragma Pharmaceuticals

Moxatag is indicated to treat tonsillitis and/or pharyngitis secondary to Streptococcus pyogenes in adult and pediatric patients of 12 years or more.

Vernalis paid an undisclosed up-front cash payment. The company will also make an additional payment after successful manufacture of re-launch completed dose product, anticipated by the end of this year.

The company will be responsible for supply chain. It will pay Pragma royalties on net sales and further potential sales associated milestones.

The US Food and Drug Administration approved Moxatag in 2008 based on a Phase III efficacy study.

It is protected by six Orange Book listed patents, the last of which expires in 2027. Vernalis said Moxatag has not been actively promoted since 2010.

Vernalis CEO Ian Garland said: "The acquisition of Moxatag is another important step in our transition to a commercial specialty pharmaceutical company.

"We are delighted that we have been able to quickly expand our primary care product portfolio and leverage our newly established US commercial infrastructure following the recent US launch of TUZISTRA XR, our extended-release cough cold oral suspension.

"Moxatag has a strong fit with our target physician audience for TUZISTRA XR and we look forward to re-launching the product in early 2016 and to its contribution to our commercial business."

Pragma acquired Moxatag from Shionogi in March 2014 and appointed Fera Pharmaceuticals to manage the sales and marketing of the brand.

Image: The US Food and Drug Administration approved Moxatag in 2008. Photo: courtesy of Business Wire.