Meda launches Medivir's cold sore treatment Xerese in the U.S.

Mar 1 2011

Medivir AB (OMX: MVIR), the emerging research-based specialty pharmaceutical company focused on infectious diseases, today announces that the Company's commercialization partner, Meda AB, has launched Medivir's unique cold sore treatment Xerese(TM) in the United States.

Xerese(TM) is the first topical combination product of five per cent acyclovir and one per cent hydrocortisone in a unique cream vehicle for the treatment of recurrent herpes simplex labialis. Xerese(TM) was granted FDA marketing approval and based on strong clinical data, Xerese(TM) was given a label, which differentiates it from other topical cold sore products currently on the market. Xerese(TM) will be sold in the U.S. as a prescription medicine.

Medivir estimates that the U.S. market for cold sore products is valued at USD 230 million (EUR 168 million) and with Meda's strong commercial presence and deep understanding of U.S. market dynamics, combined with Xerese's(TM) differentiated profile, it is anticipated that Xerese(TM) will be a successful entrant to the cold sore treatment market. Medivir granted Meda the exclusive rights to market, sell and distribute Xerese(TM) in the United States, Canada and Mexico for the treatment of cold sores (herpes labialis) in February 2010. In addition to funding the commercial development of Xerese(TM) and up-front and pre-launch milestones totaling USD 5 million, Medivir will also receive double-digit royalties on sales.

Ron Long, CEO of Medivir, commented: "We are delighted that Xerese(TM) has been launched on the U.S. market today. Our partner Meda has a strong commercial presence in the US and has demonstrated great success in marketing products in the U.S., specifically in dermatology. We very much look forward to the further launches of Xerese(TM) by our partner Meda in Canada and Mexico and also the launch later this year in Europe by our partner GlaxoSmithKline."