Baxter International Inc. (NYSE:BAX) and JW Holdings today announced
that they have entered into an exclusive distribution and license
agreement for parenteral nutritional products containing a novel
formulation of omega 3 lipids. With this collaboration, Baxter will
complement its leading global parenteral nutrition portfolio, and
provide global commercial capabilities and clinical development.
Under the terms of the agreement, Baxter will have exclusive rights to
co-develop and distribute the products globally, with the exception of
Korea. The arrangement includes a $25 million up-front payment that will
be recorded as a special pre-tax in-process research and development
charge in the third quarter of 2013. Additionally, the agreement calls
for payments totaling up to $10 million for the achievement of
regulatory milestones, along with royalties on future product sales.
The agreement remains in effect for 10 years following the first product
launch outside of Korea. The companies will share equally in the
development costs and global clinical trials and registrations. JW
Holdings will manufacture the products in its Dangjin, Korea facility.
Additionally, Baxter has specified rights to certain additional
nutritional products that JW Holdings may develop or produce in the
future.
“Lipids are an important part of nutrition therapy, particularly for
those patients who rely on parenteral feeding for sole-source or
supplemental nutrition,” said Robert M. Davis, president of Baxter’s
Medical Products business. “Baxter’s collaboration with JW Holdings
allows us to complement our existing parenteral nutrition product
portfolio and provide clinicians with additional options to meet
patients’ unique nutritional needs.”
“The agreement with Baxter expands our ability to help more patients
benefit from parenteral nutritional products containing our novel
formulation of omega 3 lipids,” said Gu Seo Park, chief operating
officer of JW Holdings. “Both companies are bringing unique technology
and expertise to this collaboration, which also will create new
opportunities for JW Holdings to grow and gain recognition globally.”
About Baxter
Baxter International Inc., through its subsidiaries, develops,
manufactures and markets products that save and sustain the lives of
people with hemophilia, immune disorders, infectious diseases, kidney
disease, trauma, and other chronic and acute medical conditions. As a
global, diversified healthcare company, Baxter applies a unique
combination of expertise in medical devices, pharmaceuticals and
biotechnology to create products that advance patient care worldwide.
About JW Holdings
JW Holdings operates as a holding company of JW Pharmaceutical which is
one of the leading pharmaceutical companies in Korea. JW Group, since
its foundation in 1945, has been leading therapeutic medicine industry
in Korea with the business motto represented by “Respect for Life” and
“Pioneering Spirit.” JW Group is committed to providing medicine and
medical supplies in the areas including I.V. solution and circulatory,
digestive, and urinary system treatments. The JW Holdings plant located
in Dangjin is the largest medical manufacturing complex in Korea that
supplies various medical products including non-PVC I.V. solutions and
is equipped with a cutting-edge automated control system while
satisfying international GMP standard.
This release includes forward-looking statements concerning a
development and commercialization agreement between Baxter International
Inc. and JW Holdings, including expectations with regard to the
financial impact of such agreement on the company and future regulatory
milestone payments. The statements are based on assumptions about many
important factors, including the following, which could cause actual
results to differ materially from those in the forward-looking
statements: satisfaction of regulatory and other requirements; actions
of regulatory bodies and other governmental authorities; clinical trial
results; changes in laws and regulations; product quality or patient
safety issues; and other risks identified in Baxter's most recent
filings on Form 10-K and other SEC filings. Baxter does not
undertake to update its forward-looking statements.
Copyright Business Wire 2013