Arena Pharmaceuticals (ARNA) In Deal to Bring BELVIQ to Tiawan

July 25, 2013 8:07 AM EDT
Arena Pharmaceuticals, Inc. (NASDAQ: ARNA) entered into an exclusive marketing and supply agreement with CY Biotech Company Ltd. (CYB) for BELVIQ® (lorcaserin HCl) in Taiwan. Under the agreement, Arena granted CYB the rights to market and distribute BELVIQ in Taiwan for weight loss or weight management in obese and overweight patients, subject to regulatory approval of BELVIQ by the Taiwan Food and Drug Administration (TFDA).

Arena will manufacture BELVIQ at its facility in Switzerland, and sell finished product to CYB for a purchase price at 45% of CYB's annual net sales. In addition, Arena received from CYB a net upfront payment of $2 million, and is eligible to receive purchase price adjustment payments based on CYB's annual net sales, as well as a milestone payment upon approval of the first additional indication for BELVIQ by the TFDA. CYB is responsible for the development, regulatory approval and, ultimately, marketing and distribution of BELVIQ in Taiwan, including related costs and expenses.

"We will continue to expand the geographic footprint for BELVIQ through agreements with pharmaceutical companies that demonstrate a combination of local regulatory expertise and proven marketing strength," said Jack Lief, Arena's President and Chief Executive Officer. "CYB was formerly part of TTY Biopharm, a leading Taiwanese pharmaceutical company. While part of TTY, CYB was the operating group that previously co-marketed the weight loss drug Reductil® with Abbott in Taiwan, and we believe CYB is well positioned to bring BELVIQ to a territory where new weight management pharmacotherapies are needed."

According to published media reports, half of adult men and a third of adult women in Taiwan are overweight or obese, which are defined in Taiwan as a body mass index >24 kg/m2 or >27 kg/m2, respectively. Eight out of the 10 leading causes of death in Taiwan are associated with obesity, and approximately 10% of total healthcare spending goes to treat problems related to obesity.

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