Pfizer acquires rights to drug for collagen disorders

NEW YORK Pfizer plans to spend $75 million up front to acquire the rights to a biologic for treating a disease that affects the hands and a disease that affects the penis.

Auxilium Pharmaceuticals announced Wednesday that Pfizer would obtain the rights to Xiaflex (clostridial collagenase injection) in 46 European and Asian countries.

Xiaflex treats Dupuytren’s contracture, a disease that causes the buildup of hard tissue in the hands, and Peyronie’s disease, which causes scar tissue to develop in the penis and results in pain and curvature during erection, often preventing sexual intercourse.

Auxilium has completed phase 3 trials of Xiaflex and plans to apply to the Food and Drug Administration for approval to market the biologic in the United States starting early next year. Xiaflex is in phase 2b trials as a treatment for Peyronie’s disease and phase 2 for frozen shoulder syndrome.

In addition to the $75 million in upfront payments, Pfizer will also pay up to $410 million in milestone payments, including $150 million in regulatory milestones and $260 million in sales milestones.

“Our partnership is a testament to Pfizer’s commitment to draw on the best external science for innovative products that complement our existing portfolio and fill unmet medical needs,” Pfizer Specialty Care Business Unit president and general manager Olivier Brandicourt said in a statement. “We look forward to combining our strengths to further the potential for Xiaflex as an advanced new treatment for patients suffering from Dupuytren’s contracture and Peyronie’s disease.”

Auxilium will remain primarily responsible for the global development of Xiaflex and all clinical and commercial drug manufacturing and supply.

Pfizer will share clinical development costs for certain trials required for the European Union and be responsible for all discretionary development within the countries for which it has exclusive rights to commercialize Xiaflex.