Lundbeck nabs new rights to Cephalon meds

Lundbeck and Cephalon are teaming up again. Denmark-based Lundbeck gets to expand in Canada and Latin America, armed with rights to several Cephalon drugs. Meanwhile, Cephalon gets help expanding the reach of those meds. Financial terms weren't disclosed, but Lundbeck will pay "double-digit royalties" on sales, the companies said.

Lundbeck has agreed to commercialize Cephalon's flagship wakefulness drug Provigil and its follow-up med Nuvigil, along with the injectable lymphoma drug Treanda, the opioid pain reliever Fentora, and two other cancer meds. The geographic rights vary; for instance, Lundbeck gets to market Provigil in Latin America only, but will sell Nuvigil in Canada and Latin America; Treanda rights apply to Canada only. The company already sells Provigil in Mexico.

"The new products are expected to generate peak turnover of $100 million, of which Lundbeck will be paying royalties to Cephalon," Jyske Bank's Frank Andersen explained to Reuters. "We estimate those to be at a level of 20-40 percent."

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