Join our daily newsletter At The Bell to receive exclusive market insights
- Arovella Therapeutics (ALA) begins the commercial launch of ZolpiMist in Australia
- STADA Australia initiated the nation-wide launch of the spray for short-term treatment of insomnia in adults
- Arovella is now in the process of implementing a more economical and user-friendly, child resistant lock for the product, which will then be implemented into the second batch of ZolpiMist manufacturing
- Once the new lock gains the tick of approval from the TGA, Arovella will receive a milestone payment of $40,000 plus a 10 per cent royalty on net sales
- Company shares are up 4 per cent, trading at 2.6 cents at 12:10 pm AEST
Arovella Therapeutics (ALA) has begun the commercial launch of ZolpiMist in Australia.
The biotechnology company announced STADA Australia has initiated a nation-wide launch for the cherry-flavoured, fast-acting oral spray of zolpidem tartrate, a product designed for short-term treatment of insomnia in adults.
The news comes after gaining approval from the Therapeutics Goods Administration (TGA), which Arovella then followed with a licence and distribution agreement with STADA Australia.
Under the terms of the agreement, Arovella is coordinating the production of ZolpiMist through its Australian manufacturer.
The company is currently in the process of implementing a more economical and user-friendly, child resistant lock for the product.
Once the new lock gains the tick of approval from the TGA, Arovella will receive a milestone payment of $40,000. The new design will then be implemented into the second batch of ZolpiMist manufacturing.
In addition to supply price, Arovella will also receive a 10 per cent royalty on net sales of the product once the new lock is in place.
Arovella CEO and Managing Director Dr Michael Baker said this is an exciting milestone for Arovella.
“We expected the product to be commercialised in the third quarter of 2022 and we have achieved that milestone early,” Dr Baker said.
“It is due to the hard work of our team and our manufacturing partner that we have been able to achieve this milestone. We look forward to continuing and expanding the partnership with STADA.”
STADA still maintains the option to commercialise the product throughout New Zealand, and has been considering expanding its footprint across additional territories.
Arovella Therapeutics was up 4 per cent, trading at 2.6 cents per share at 12:10 pm AEST.
