Auxilium, Vivus in deal worth up to $300 million for erectile dysfunction drug

CHESTERBROOK, Pa. — Auxilium Pharmaceuticals will have exclusive rights to market a drug for erectile dysfunction in the United States and Canada, under a new licensing agreement with the drug's manufacturer.

Auxilium announced the deal with Vivus for Stendra (avail). Under the license, Auxilium will pay Vivus a one-time license fee of $30 million. If the Food and Drug Administration approves a change to the drug's label to reflect an onset of the drug's effecting 15 minutes or less, Auxilium will pay a $15 million milestone payment, as well as royalties and up to $255 million in potential milestone payments based on various sales goals.

"We believe Stendra complements our current portfolio of testosterone replacement therapy and [erectile dysfunction] products, further broadening our men's healthcare franchise in a very large market segment consisting of patients that tend to switch among products," Auxilium president and CEO Adrian Adams said. "We believe the unique features of Stendra, including its dosing interval [of] 30 minutes prior to sexual activity, ability to take with or without food, modest alcohol consumption requirements and a favorable side effect profile make it an exciting entrant into the category."