Fenwick & West Represents Cellegy Pharmaceuticals in Strategic Licensing Transaction with PDI Inc.

January 02, 2003

Fenwick & West represented client Cellegy Pharmaceuticals, Inc., a public specialty pharmaceutical company based in South San Francisco, California, in the negotiation and signing of a strategic license agreement with New Jersey-based PDI Inc. to commercialize Cellegy's Tostrex product in North American markets. Tostrex is a prescription testosterone gel for treatment of male hypogonadism, a condition that has been estimated to affect up to 5 million men in the United States alone and that can result in reduced libido and other signs of aging. Washington, D.C.-based partners Kevin Kelso and Brian Kelly represented Cellegy in the transaction. The agreement provided for an initial payment of $15 million to Cellegy upon signing of the agreement; an additional $10 million payment upon FDA approval of the product, and royalties based on product sales.

"Agreements like these can help a company initiate a commercial product launch with a large and experienced sales force without incurring the up-front expenses associated with hiring an internal sales force," said Kelso. "The transaction will also provide Cellegy with cash to help fund product development activities for its other product candidates."

Inquiries may be directed to C. Kevin Kelso, 202.261.0405; or Business Development Manager, Brian Colucci at 650.335.7616;