Navamedic ASA has signed a marketing and distribution agreement with an undisclosed partner in the German market. With this agreement, the company has established a marketing and distribution network of 13 partners covering 25 countries.
During February, Navamedic has also received Marketing Authorisation (MA) for Glucomed®/Flexove(TM) in Germany. The product is not subject to reimbursement in Germany. With both marketing/distribution partner and MA in place, there are no further regulatory hurdles before Glucomed/Flexove can be launched in the German market. Glucomed/Flexove is the second pharmaceutical glucosamine product approved in the German market.
-Germany will be an important market for us, and we are happy to have secured a strong partner. Our partner is one of the leading players in the German pharma market and has strong experience from OTC branding. The German market is fragmented, with competition from pharmaceuticals as well as cost supplements, and a successful entry depends on market knowledge and strong marketing muscle. We have found a partner who has both, says CEO Øyvind Brekke in Navamedic.
Navamedic will receive an up-front payment of EUR 500,000, payable in Q2. The up-front payment will be stated as income over the life time of the agreement from the date of launch.
The five- year agreement is non-exclusive. Nevertheless, the agreements imposes certain limitations on Navamedic’s partner with respect to launching other glucosamine products. The agreement opens for re-branding of the product under the partner’s own brand.
Navamedic will give more information regarding timing of launch of Glucomed/Flexove in Europe in the Q1-presentation on 25 April 2007.