Sep 9 2008
Starpharma Holdings Limited today announced that a full licence agreement has been signed with SSL International plc (LSE:SSL) in relation to the VivaGel® coated condom. SSL manufactures and sells Durex® condoms, the market-leading condom brand worldwide.
Under the terms of this agreement SSL secures marketing rights to the VivaGel® coated condom in most of the world, including Europe and the USA. Starpharma estimates that its receipts under the agreement will exceed A$100m comprising royalties on SSL sales, further milestone payments, and development support.
“Given the potential for near term revenue, brand development and the overall size of this opportunity, Starpharma sees the VivaGel® coated condom as a key element in our corporate strategy,” said Dr Jackie Fairley, Starpharma’s CEO.
“We are particularly pleased to be working with a company such as SSL, which has the capabilities and marketing strength to rapidly move the product through registration and into the market. This agreement is undoubtedly Starpharma’s most important commercial milestone to date,” Dr Fairley added.
SSL is the world’s leading marketer of condoms with approximately 30% share of the global market for branded condom sales, selling into over 100 countries around the world. Global condom retail sales have been estimated[1] at approximately $3.2 billion, with the top four companies representing as much as 70% of the market.
Leigh Taylor, Head of Innovation from SSL commented, “VivaGel® offers leading edge technology with the potential to enhance our Durex® business. We are very pleased to have reached agreement with Starpharma and look forward to working with them to bring the product to market.”
In addition to the VivaGel® coated condom, Starpharma continues to develop VivaGel® as an applicator-delivered vaginal product for use by women to protect themselves from HIV and HSV-2 (genital herpes).