ProStrakan purchases Tostran and Rectogesic rights for $9m

ProStrakan, the British speciality pharmaceutical company, has purchased expanded rights for Rectogesic and Tostran from Cellegy Pharmaceuticals, subject to shareholder approval.

For a fee of $9 million (4.7 million pounds), Galashiels-based ProStrakan will be given worldwide rights for Rectogesic, a treatment for pain associated with chronic anal fissures, and Tostran, a testosterone gel.

ProStrakan’s directors claim that sales of Rectogesic in the US, where it is marketed as Cellesgesic, could range between $50-70 million. The company also points to the success of Tostran, for which it already holds EU rights, where in Sweden the product has “already” gained a testosterone gel market share of 29 per cent.

Dr Wilson Totten, chief executive officer of ProStrakan, remarked: “Tostran and Rectogesic are both high potential, high value specialist care products.

“This is a significant value-creating transaction for ProStrakan, wholly in line with our strategy.”

Dr Totten concluded by saying the company’s revenues are “rapidly growing”, enabling the company to develop its product pipeline at a faster rate – as “exemplified” by recent collaborations with Amgen and Novartis.

Completion of the acquisition of rights for Tostran and Rectogesic should be complete by the end of November, following confirmation from Cellegy shareholders.

Two weeks ago, Novartis announced a collaboration with ProStrakan to develop and commercialise novel antibodies as treatments for bone diseases. The Swiss pharmaceutical company will pay ProStrakan $5.75 million over two years, with the potential of a further $140 million in milestone agreements and marketing approvals.