Penwest Pharmaceuticals signs drug development and commercialization agreement with Alvogen

Apr 9 2010

Penwest Pharmaceuticals Co. (Nasdaq:PPCO) today announced that it has signed a drug development and commercialization agreement with Alvogen, Inc. under which Penwest and Alvogen have agreed to identify and select up to five compounds for generic development. Penwest's TIMERx technology may be used for each compound selected. Penwest will formulate the agreed-upon compounds and receive milestone and royalty payments that are linked to the development of each compound. 

Alvogen, the U.S.-based pharmaceutical manufacturer of complex generic products for U.S., E.U. and other international markets, will be responsible for manufacturing, clinical trials and regulatory filings for each of the formulations, as well as commercialization of the products worldwide. 

Jennifer L. Good, Penwest's President and CEO, said, "We are very pleased to be partnering with Alvogen because of their record for successful product introductions within the generic pharmaceutical industry. This multi-drug, multi-national agreement allows Penwest to leverage its drug delivery technology for the formulation of generic drugs, an important segment of the market for extended release technology.

"TIMERx technology had its start in generics with the development of the first generic to Pfizer's Procardia XL product, which was formulated using the Alza Oros technology. We are pleased to be leveraging this valuable advantage of TIMERx in the development of difficult-to-formulate generic products with the expertise of the team from Alvogen."

The collaboration agreement with Alvogen represents a valuable addition to Penwest's growing drug delivery portfolio of development programs, which is being built upon broader strategic partnerships. Penwest currently has four individual research and development agreements with Otsuka Pharmaceutical Co., Ltd. working on branded products, and will now add this multi-drug agreement with Alvogen focused on generic drug development.