Warner Chilcott Company, Inc. has entered into an agreement with NexMed, Inc. to acquire the U.S. rights of NexMed’s topically applied alprostadil cream for the treatment of erectile dysfunction (ED). As a result, the previous license agreement between Warner Chilcott and NexMed related to this product has been terminated. Under the terms of the agreement, NexMed received an up-front payment of $2.5 million and is eligible to receive an additional payment of $2.5 million upon Warner Chilcott’s receipt of a New Drug Application approval from the FDA. In addition, Warner Chilcott will pay a total of $350,000 for the manufacturing equipment for the product.
