Neurim Pharmaceuticals Ltd. has expanded the exclusive market agreement for its Circadin insomnia treatment with Denmark's Lundbeck A/S (KFX: LUN) in Asia, Latin America, and other major markets such as Australia and Turkey. Following regulatory filing and approval, Lundbeck expects to market Circadin in the first markets outside of Europe in 2009.
Neurim will receive an upfront payment and a share of revenue. The upfront payment will be deducted from the share of revenue in the first three years of commercialization. Neurim is responsible for manufacturing.
In June 2007, the European Commission approved Circadin for the short-term treatment of primary insomnia characterized by poor quality of sleep in patients aged 55 and above. The approval was based on clinical trials that show positive effects on sleep induction, sleep quality, and most importantly, day-time functioning and quality of life. The trials also show that there are no signs of development of dependency. Lundbeck expects to launch Circadin in 15 European markets from the first half of 2008. The drug is undergoing licensing procedures with the US Food and Drug Administration (FDA).
Neurim CSO Prof. Nava Zisapel founded the company on the basis of her hormone research at Tel Aviv University. She is the wife of entrepreneur Yehuda Zisapel, the chairman of RAD Group which has invested tens of millions of dollars in the company and full owns it.
Circadin is an IP-protected prolonged-release, ethical drug that contains melatonin, a naturally occurring hormone produced by the pineal gland; it has a pivotal role in the regulation of circadian rhythms and sleep. Endogenous melatonin levels decrease with age and may contribute to the common complaint of poor sleep quality seen amongst those in middle age and in the elderly.
Published by Globes [online], Israel business news - www.globes-online.com - on May 4, 2008
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