QLT restructures Visudyne agreement with Novartis

QLT (TSX: QLT; NASDQ:QLTI) is taking a more hands-on role selling its Visudyne eye drug, including rights to sell and market the drug in the U.S., under an amended agreement with long-time marketing partner Novartis Pharma that takes effect at the start of 2010. Novartis will continue to distribute Visudyne outside the U.S.

“We are very pleased with the amended terms of our agreement with Novartis, which we expect will increase our revenue from Visudyne and will simplify our relationship,” Bob Butchofsky, CEO of QLT, said in a statement.  ”This restructure will allow us to directly influence Visudyne sales in the U.S. by establishing a small focused sales force centered on retinal specialists.”

The Vancouver-based company said Novartis will pay QLT a royalty of 20% of ex-U.S. net sales until Dec. 31, 2014, and then 16% of ex-U.S. net sales until the amended accord ends on Dec. 31, 2019.  QLT is changing hands at $4.24, up 14 cents, on the TSX Monday morning.

QLT will continue to manufacture Visudyne and will supply the product at a pre-specified price exclusively to Novartis for ex-U.S. distribution.  QLT and Novartis will each be responsible for all costs and expenses associated with marketing and sales in their respective territories.  Visudyne is approved worldwide to treat the wet form of wet age-related macular degeneration (AMD), the leading cause of legal blindness in seniors.