Navamedic ASA has signed a marketing and distribution agreement with William Ransom & Son plc in the United Kingdom. With this agreement, Navamedic has established a marketing and distribution network for Glucomed/Flexove of 14 partners covering 26 countries.
Glucomed/Flexove will be the first pharmaceutical glucosamine product to be approved and launched in the UK market. Product launch is expected in the second half of 2007 under an undisclosed brand name.
William Ransom & Son plc (Ransom) was the pioneer and is the leading player in the £50 million market for nutraceutical glucosamine products in UK. Navamedic and Ransom look forward to introducing the first pharmaceutical glucosamine product in the UK market.
-UK will be an important market for us, and we are happy to have secured such a strong partner. Our partner is the UK market leader in nutraceutical glucosamine, has in-depth knowledge of the market, and is recognized for their focus on high-quality products. Together we will establish the pharmaceutical segment of the market, and we believe we can take a significant part of this interesting market together with Ransom, says CEO Øyvind Brekke of Navamedic. -With this agreement, we have made marketing and distribution agreements in all the EU/EEA markets we have identified as the most important so far, in addition to selected agreements outside EU/EEA.
Under the agreement, Navamedic will receive an up-front payment of £ 600,000, of which £ 300,000 becomes due and payable upon signature, and the remaining £ 300,000 becomes due and payable when Navamedic receives Marketing Authorization in the UK. In Navamedic’s accounts, the up-front payment will be stated as income over the life time of the agreement from the date of launch.
The ten- year agreement is exclusive. Ransom guarantees certain minimum purchase volumes in the first two years.
Navamedic will give more information regarding timing of launch of Glucomed/Flexove in Europe in the Q1-presentation on 25 April 2007.