Gardasil Generated $10 Mil. In First 11 Days On The Market
This article was originally published in The Pink Sheet Daily
Executive Summary
Merck will pay royalties of between 24%-26% of worldwide sales of Gardasil in the aggregate, including payments to CSL Limited relating to technology used in the human papillomavirus vaccine
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Merck will pay royalties of between 24%-26% of worldwide sales of Gardasil in the aggregate, including payments to CSL Limited relating to technology used in the human papillomavirus vaccine. "As previously disclosed, the company has entered into a licensing agreement and collaboration with CSL Limited relating to technology used in Gardasil as well as other agreements [with] third parties, including academic and research institutions," Merck CFO Judy Lewent stated during the company's second quarter earnings call July 24. In addition, Merck previously entered into a cross-licensing deal and settlement agreement with GlaxoSmithKline regarding certain patent rights related to the HPV vaccine (1 (Also see "HPV Vaccine Deal Gives GSK Royalties From Merck's Product" - Pink Sheet, 3 Feb, 2005.)). "Keep in mind this royalty rate was, of course, factored into our long-term guidance," Lewent said. "There is no change to that guidance." Gardasil generated second quarter sales of $10 mil. in the U.S. after reaching distribution on June 19, Merck reported. FDA approved Merck's three dose HPV June 8 (2 (Also see "Merck’s Gardasil HPV Vaccine Clears FDA" - Pink Sheet, 8 Jun, 2006.)). CEO Richard Clark additionally provided color on the expected reimbursement environment for Gardasil, saying "managed care organizations, representing approximately 50% of covered lives in the U.S., have made positive coverage decisions for Gardasil." -Kathryn Phelps |