Apricus Bio awards Neopharm exclusive rights to market and sell Vitaros in Israel and Palestinian Territories

Feb 15 2011

Apricus Biosciences, Inc. ("Apricus Bio") (Nasdaq:APRI), announced today that it has entered into a licensing agreement granting Neopharm Group ("Neopharm") the exclusive rights to market and sell Vitaros^®, Apricus Bio's treatment for erectile dysfunction ("ED") and, when and if available, its formulation for the treatment of premature ejaculation ("PE"), in Israel and the Palestinian Territories of the Gaza Strip and the West Bank.

On November 12, 2010, Apricus Bio announced that Health Canada had approved Vitaros^® for marketing as the first topical treatment for ED in that country. The application for approval to market Vitaros^® for ED in Israel is scheduled to be filed in the first half of 2011 and later, in the Palestinian Territories.

Under the terms of the licensing agreement, Neopharm has been granted exclusive rights in Israel and the Palestinian Territories to commercialize and market Vitaros^® under the Vitaros^® trademark for ED and, when and if available, Apricus Bio's formulation for PE. In return, Apricus Bio is entitled to receive up to a total of $4.35 million in up-front, regulatory and sales milestone payments for the products. Further, over the life of the agreement, Apricus Bio will receive tiered, double-digit royalties based on Neopharm's sales of the products. 

Commenting on today's announcement, Dr. Bassam Damaj, President and Chief Executive Officer of Apricus Bio, stated, "We are delighted to be able to announce yet another licensing and commercialization agreement for our first product, Vitaros^®, that utilizes our proprietary NexACT^® technology. Since December 22, 2010, we have closed three licensing and commercialization transactions covering 14 countries. We also continue to talk with numerous other potential partners to increase the number of these transactions and to broaden the potential market for Vitaros^®."

David Fuhrer, Chairman of the Neopharm Group, commented, "I am confident that our well established expertise and heritage in partnership with innovative biopharmaceutical companies will make Vitaros^® a success in Israel. We see Vitaros^® as an excellent addition to our group's strong and growing portfolio of innovative products."