"Anaphylactic shock due to allergic reaction to peanut-based food additives is a growing health risk that currently results in over 30,000 emergency room trips, and 150 to 200 preventable deaths, in the US each year, on top of some 50 deaths from bee sting and other allergic reactions," said Dipak Chattaraj, Chairman of Ranbaxy, the US parent company of Ranbaxy Pharmaceuticals.
Under the terms of the agreement, Senetek has sold its patents, trademarks and automated manufacturing equipment for its proprietary disposable autoinjector for self-administration of parenteral drugs.
The agreement provides for a non-refundable payment on signing and milestone payments based on regulatory approvals and cumulative sales milestones.
Terms also include a percentage of Ranbaxy's and/or its licensees' quarterly net sales of the product(s). Initially, >Ranbaxy will focus on pre-filling the autoinjector device with epinephrine.
Ranbaxy will also evaluate the development of other parenteral drugs (including Senetek's patented erectile dysfunction drug Invicorp).
The company revealed that they would be making infrastructure investments, including building out the required clean room suites at its facility in New Brunswick, New Jersey to house the highly automated Reliaject production line.
They also said they would be obtaining regulatory approvals and marketing the product, agreeing to negotiate with Senetek's licensees for Invicorp for contract manufacturing agreements to produce the autoinjector pre-filled with Invicorp.
"Placing Senetek's Reliaject autoinjector technology and equipment with a strong commercial partner committed to bringing it to market has been one of the key goals of Senetek's strategic plan," said Frank Massino, Chairman and Chief Executive Officer of >Senetek.
"Ranbaxy is ideally suited to maximising the commercial potential of this unique and valuable technology. This transaction will further support our business plan which is to become a worldwide leader in the development of skincare and dermatological technologies," he added.
Senetek's modular autoinjector is suited for the rapidly growing self-medication market, which currently is growing at over 25 per cent annually.
Users of such administrative technology include those who administer epinephrine for emergency treatment of anaphylactic shock from peanut and other allergies.
The company said that device could also be adapted for other acute applications, including the military and homeland security sectors for administration of antidotes to chemical and biological agents.
In the United States Military, autoinjectors loaded with atropine are used for first aid against nerve agents.
Nerve Agents kits supplied to the US military include the drug atropine and 2-Pam-Cl (pralidoxime chloride). In the US military Mark I kits, these drugs are included in separate autoinjectors.
Another type of autoinjector, the ATNAA (Antidote Treatment Nerve Agent Auto-Injector), has both drugs in one syringe, allowing for the simplication of administration procedures.
In both the British Armed Forces and the US Military, every serviceman/woman is issued with three autoinjectors as part of standard chemical warfare protective equipment.