A subject worth revisiting from the 4th Q yr end CC (from SA transcripts) read just how TEVA is talked about.
Aaron Hartley
If you don't mind, we have another one for you. Could you give us a little more detail on the new sumatriptan agreement?
Apple:
Yes, I think sumatriptan was originally VIBEX 2. And what -- Teva came to us and realized that we've been doing much more on our own with methotrexate and products like QS T, so they wanted to have us do more of the development work further downstream. And so what the agreement is currently is that Teva will make the sumatriptan in a prefilled syringe and send that to our manufacturers where we will make the device, assemble the device with the prefilled syringe and do the final packaging, all on our equipment. And so it's truly taking us all the way down to the commercial supply of the product, which is very different than our other agreements with Teva where we typically just supply them with the devices and then they do everything after that. So we felt that was a real positive step in our relationship in providing them the flexibility to have us complete the product development for them. Once the product is completed, we will ship it to Teva and they will distribute it into the retail marketplace. Obviously, sumatriptan is -- we believe, it's an ANDA and we will believe it'll be AB rated for substitutability to IMITREX. And that once the product is sold, it's basically net sales minus cost of goods and then we split the profits. I think it's a great opportunity for us to get, like I said, further down the commercial stream with them.
Wotton -
Yes. I think it's also a reflection of how far we've come as a company because as a result of our taking charge of our own destiny with methotrexate and now testosterone, we've been able to grow the infrastructure, get the right people in place to enable the downstream development of these type of programs.
Apple:
Yes, and we're going to be doing all this with the same equipment that we're using in methotrexate, and that were doing all the methotrexate manufacturing and commercial packaging on. And so there's a real synergy from a capital standpoint to be able to do this.
