Schering-Plough to sell Danish anti-allergy drug

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schering ploughCOPENHAGEN (Reuters) - U.S. drug maker Schering-Plough Corp. <SGP.N> will develop and sell Denmark's ALK-Abello anti-allergy drug Grazax in North America, the Danish company said on Wednesday.

Shares in the Danish company rose 7.1 percent to 1,550 crowns on the news.

The drug treats grass pollen, house dust mite and ragweed allergies. The two companies will develop and sell it in the United States, Canada and Mexico, with Schering-Plough acquiring exclusive license rights.

Under the agreement, ALK-Abello will receive $35 million upfront from Schering-Plough and may receive a total of $255 million in milestone payments. Out of this amount, $65 million relates to the clinical development and regulatory approval for the drug and the rest to sales goals.

ALK-Abello will also receive royalty payments on net sales of the product in North America.

Schering-Plough will be responsible for all the costs of clinical development, registration, marketing and sales of the drug in North America, while ALK-Abello will deal with production and supply.

Schering-Plough shares last traded down 22 cents at $23.64 on the New York Stock Exchange before the New Year holiday.

source - Reuters