Finalised US distribution deal for IDT cancer drug

Victorian pharmaceutical company IDT Australia (ASX:IDT) has finalised the appointment of its US partner — a subsidiary of South Australian company Mayne Pharma (ASX:MYX) — for the distribution of its generic temozolomide cancer treatment product.

Temozolomide is an oral chemotherapy drug used to treat melanoma and gioblastoma multiforme and had US sales of approximately US$220 million in the 12 months ending 30 June 2015. Subject to minimum order requirements, Mayne Pharma will be the exclusive distributor of the drug in the US for an initial term of 10 years.

As part of the agreement, Mayne Pharma will pay upfront payments totalling just over US$1.06 million to IDT upon various milestones. The agreement also contains a product pricing and profit share arrangement based on IDT’s manufacture and Mayne Pharma’s US sales of temozolomide product respectively.

“We are pleased to finalise the details of our arrangements with Mayne Pharma and look forward to a mutually beneficial relationship supplying this valuable and important drug to US patients,” said IDT Managing Director Dr Paul MacLeman.

IDT filed an Abbreviated New Drug Application (ANDA) for temozolomide with the US FDA in November 2013, which has since been accepted for review. IDT and Mayne Pharma are targeting a commercial launch of temozolomide in the US in late 2016 to early 2017.

IDT Australia (ASX:IDT) shares were trading 10.81% higher at $0.41 as of around 3 pm on Thursday. Mayne Pharma (ASX:MYX) shares were trading 2.01% higher at $1.015.