Vancouver-based QLT Inc. (TSX:QLT; Nasdaq:QLTI) has created a new U.S. subsidiary to sell its macular degeneration drug in America.
Beginning January 1, 2010, QLT Ophthalmics Inc. will take over the sales and marketing of Visudyne in the U.S. from Switzerland-headquartered Novartis Pharma AG.
In mid-October, QLT amended its agreement with Novartis to take over U.S. sales, while the Swiss pharmaceutical firm would continue to have sales and marketing rights in every country outside the U.S. Novartis will pay QLT a 20% royalty on net international sales until 2014 and 16% until 2019.
The deal came a couple weeks after QLT sold its U.S. subsidiary in a stock deal worth up to US$230 million.
For the six-month period ending June 30, 2009, QLT reported that approximately 31% of Visudyne's sales originated in the U.S. That's up from 25% in the same period a year ago.
About 27% of Visudyne sales were in Europe, down from 35% a year ago. The revenue share from other worldwide markets remained relatively unchanged at 42% of sales in the period compared with 40% in the six-month period a year ago.
However, total sales for the six-month period fell to $56.7 million from $77.1 million.
Age-related macular degeneration is the leading cause of blindness in the elderly.
QLT's share price range during the past week: between $5.03 and $5.14; 52-week high: $5.25; 52-week low: $1.57.