Weight-loss drug deal gives GSK access to market
July 20, 2004
GLAXOSMITHKLINE (GSK), the world’s second biggest pharmaceutical company, made its first move into the lucrative weight-loss market yesterday, snapping up the over-the-counter (OTC) rights to Xenical in the US.
GSK will make an upfront payment of $100 million (£53 million) to Roche, the Swiss pharmaceutical group that invented the much-hyped slimming pill, followed by undisclosed milestone and royalty payments.
Xenical, which was launched in 1998, has been proven to help committed dieters lose weight faster. However, sales have been damaged in recent years by the treatment’s side-effects, including diarrhoea. It is the leading brand in the US and the most commonly prescribed obesity drug in Europe.
Under the deal, GSK will oversee the “switch” of Xenical from a prescription-only drug to a pill that can be bought over the counter at pharmacies without a prescription.
A spokeswoman for GSK said the company expected approval by the US Food and Drug Administration for the drug as an OTC product within six to 12 months. Analysts believe that the US anti-obesity market alone could exceed $5 billion by 2010.
Franz Humer, chief executive of Roche, said: “GSK’s experience in OTC switches, their marketing capability and expertise in consumer communications were the factors that helped us identify GSK as our preferred partner.”
Alizyme, the small British drugs company, is also attempting to benefit from the weight-loss market. Late-stage clinical trials on its anti-obesity drug, ATL-962, showed that it aided weight loss without the side effects of rival products.
Alizyme has already secured patent approval for the treatment of obesity and Type II diabetes in the important US market and is in advanced talks with several potential joint venture partners to license the product globally and bring it to market. It has already sold the Japanese rights for ATL-962 to Takeda, the Japanese pharmaceutical group.
Like Roche’s Xenical, ATL-962 works by obstructing the body’s ability to absorb fat, thereby reducing calorie intake
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Source : www.wtnh.com | 
