) recently entered into an agreement with UK-based Clinigen Group
plc for the commercialization of Vibativ (telavancin) in the EU
and several other European countries including Switzerland and
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As per the terms of the agreement, Clinigen Group will have the
exclusive rights to commercialize Vibativ in the above
territories for treating patients suffering from nosocomial
pneumonia (NP), including ventilator-associated pneumonia, caused
by susceptible isolates of gram-positive micro organisms. We note
that NP is a dangerous infection and is contracted by
In return, Clinigen Group will make upfront payments of $5
million to Theravance. Additionally, Theravance will also be
eligible to receive tiered royalties (in the range of 20% to 30%)
on net sales of Vibativ.
Theravance received EU approval for Vibativ for NP in 2011.
However, in May 2012, the European Commission (EC) suspended
marketing of Vibativ due to manufacturing issues. Theravance is
currently working on sorting out these issues.
Vibativ was approved by the US Food and Drug Administration (FDA)
in Sep 2009 for treating adults suffering from complicated skin
and skin structure infections (cSSSI) resulting from susceptible
gram-positive bacteria, including both methicillin-resistant
(MRSA) and methicillin-susceptible (MSSA) strains of
Theravance, a biopharmaceutical company, carries a Zacks Rank #3
(Hold). Biopharma companies that currently look more attractive
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