CollaGenex Pharmaceuticals, Inc. (CGPI) Announces Restructuring Following FDA Approval Of IVAX Corporation (IVX) And CorePharma LLC's Generic Form Of Periostat; CollaGenex Will Cease All Sales And Marketing Activity With Respect To Periosta; Plans To Reduce Work Force
10/19/2005 5:10:07 PM
NEWTOWN, Pa.--(BUSINESS WIRE)--May 16, 2005--CollaGenex Pharmaceuticals, Inc. (Nasdaq: CGPI) today announced restructuring plans following the approval by the FDA of a generic form of Periostat(R) for sale by IVAX Pharmaceuticals Inc. and CorePharma, LLC. Unless an injunction is ordered, CollaGenex will cease all sales and marketing activity with respect to Periostat as of Friday, May 20 and execute plans to reduce its headcount by 63 people, including all of its dental sales force. The 34-person dermatology sales force will continue to market Pandel(R), a prescription corticosteroid, prepare for the launch of Oracea and sell other products that the company may co-promote or in-license in the future. The Company will also continue to develop its dermatology product pipeline.
CollaGenex's License and Supply Agreement with Mutual Pharmaceuticals will terminate following a generic launch, and Mutual will receive a royalty free license to manufacture and distribute its own product. CollaGenex will be required to reimburse Mutual for rebates that Mutual must pay its customers for certain inventories that become devalued as a result of a generic introduction.
Colin Stewart, president and chief executive officer of CollaGenex, said, "While we are clearly disappointed with the generic approval, we remain confident in our ability to build CollaGenex' dermatology franchise. We look forward to receiving the Oracea(TM) Phase III clinical results at the beginning of June, and we anticipate submitting a New Drug Application for Oracea in the third quarter of 2005. The recent results of the proof-of-concept trial of Col-3 in rosacea patients underscore the depth of our pipeline, and we intend to initiate a proof-of-concept trial of Col-3 in acne patients. We also expect to launch our first product using the Restoraderm(TM) technology platform by the end of 2005."
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