Flamel Technologies announced, on 18th October 2011, that it has entered into a multi-year supply agreement with GlaxoSmithKline (GSK) for the production of Coreg CR microparticles.
The agreement between Flamel and GlaxoSmithKline
Flamel Technologies is the sole supplier of Coreg CR microparticles for GSK. Under the agreement, Flamel will receive guaranteed minimum payments to supply Coreg CR microparticles over a period of several years.
The agreement defines the manufacturing relationship between the two companies following the expiration of the previous supply agreement on 31th December 2010.
Pursuant to the agreement, Flamel received a payment of EUR 1.3 Million during the third quarter and anticipates a further EUR 1.3 Million payment to be paid in the next ten days, as well as the higher margin on all product produced by Flamel since 1st January 2011.
Statements of Stephen H. Willard, Flamel's chief executive officer
Stephen H. Willard, Flamel's chief executive officer, commented, "We welcome the conclusion of this agreement with GlaxoSmithKline. The new supply agreement provides Flamel and its shareholders with higher margins and greater certainty. We believe that this agreement further strengthens our ability to develop both of our best-in-class drug delivery platforms."
About Micropump®
The Micropump® micro-encapsulation drug delivery platform (oral drugs) is designed to increase the absorption time of drugs, particularly for drugs only absorbed in the small intestine. Micropump enables the achievement of precise pharmacokinetics.
Micropump can be presented in various dosage forms such as capsules, tablets, sachets or oral suspensions (LiquiTime) without modifying the release rate. Micropump is the intellectual platform licensed by GlaxoSmithKline for the development of Coreg CR.
Flamel has also developed another drug delivery technology for oral drugs, i.e. Trigger Lock for the controlled release of narcotic and opioid analgesics while defeating most commonly employed methods of tampering.