Easton Pharmaceuticals Closes Deal with BMV Medica to Distribute Injectable Approved Cancer Drugs to Mexico and Latin America

Easton Pharmaceuticals Inc. (OTCMKTS:EAPH) announced that it has closed a recently announced MOU with BMV Medica SA de CV to distribute injectable approved cancer drugs from Biolyse Pharma to Mexico and Latin America.

As quoted in the press release:

The Easton / BMV agreement is under similar terms as previously announced with the Common Sense Inc. agreement for the diagnostic women’s health products which maintains a 50/50 net profit sharing on all sales of a line of generic cancer drugs beginning with “Paclitaxel” and “Docetaxel” from St. Catharines, Ontario based Biolyse Pharma Corporation. The terms of the agreement calls for Easton to support the regulatory filings in Mexico for marketing authorization (MA) together with some ancillary costs.

The regulatory filing process has commenced and Easton has forwarded funds directly to Ackerman Pharma who is overseeing the submission and has received the necessary documents from Biolyse Pharma. Once the completed and translated submission package is ready, it will be put in “fast-track” status through a government-approved, third-party authorized reviewer, and if no further documentation is required, the approval could be granted in a few short months. Biolyse’s “Paclitaxel” is already approved in Canada and several other countries worldwide, and “Docetaxel” has been filed for approval with Health Canada.

The majority of sales in Mexico will be to the Mexican government hospitals and institutions. As Canada is part of the North American Free Trade Agreement (NAFTA), Canadian-manufactured pharmaceuticals qualify for the national tender program in Mexico, providing a major advantage over other non-NAFTA manufacturers. The “Docetaxel” market in Mexico is by itself approximately US$15 MM annually, and BMV expects to be able to garner 20% of that within a year of launch, expected in late 2015 or early 2016, growing to 30% within three years. The total generic cancer drug market in Mexico represents hundreds of millions of dollars.

In other Latin American countries BMV/Easton expect to sell in aggregate an equal amount of Biolyse’s cancer drugs as in Mexico, and some of these other countries have a more streamlined regulatory approval process, allowing BMV to begin selling almost immediately pending distribution arrangements with local companies. In these other Latin American markets, the buying of cancer drugs mimics the Mexican model, in that government agencies allow for tender bids to meet their forecasted annual supply.

Click here to read the full Easton Pharmaceuticals Inc. (OTCMKTS:EAPH) press release.