Theratechnologies and Merck affiliate close a collaboration and licensing agreement for Tesamorelin valued at US$215 million

On December 16, 2008, Theratechnologies and EMD Serono Inc., an affiliate of Merck KGaA , closed their transaction related to a collaboration and licensing agreement for the exclusive commercialization rights to tesamorelin in the United States for the treatment of excess abdominal fat in HIV patients with lipodystrophy. Theratechnologies retains all tesamorelin commercialization rights outside of the US. Under the terms of the agreement, Theratechnologies received an upfront payment of US$30 million and may receive up to US$215 million in total payments, including the upfront payment, and payments based on the achievement of certain development, regulatory and sales milestones. Theratechnologies will be entitled to receive increasing royalties on annual net sales of tesamorelin in the US. Fasken Martineau advised Theratechnologies in the negotiation of this agreement with a team that included Robert Paré, Catherine Isabelle, Robert Girard and Nicolas Morin.