OSG Norwich to make Vancocin capsules for ViroPharma under five-year pact

By Ted A. Knutson

Washington, Dec. 1 - ViroPharma Inc. said Thursday it has entered a five-year master agreement and project agreement with OSG Norwich Pharmaceuticals, Inc. to have OSG manufacture Vancocin capsules.

ViroPharma will begin to purchase Vancocin from OSG Norwich once OSG's factory for the capsules has been qualified by the Food and Drug Administration, which is projected during the first half of 2006.

The master agreement contains the general ordering and commercial supply terms and conditions that will apply to each discrete project undertaken by the companies. The project agreement relates to the development of commercial validation batches of Vancocin and the manufacture of initial commercial lots of Vancocin. The project agreement also sets forth the specific economic terms for purchase of Vancocin finished product including price and minimum purchase requirements.

ViroPharma may also continue to buy Vancocin from Eli Lilly & Co. until Sept. 30, 2006 or a later date if the OSG Norwich site is not qualified by the FDA by Sept.30, 2006.

According to ViroPharma, Vancocin is the only antibiotic approved to treat two significant bacterial infections of the lower digestive tract.

Norwich, N.Y.-based OSG is an outsourcing provider of prescription and non-prescription drugs.

Based in Exton, Pa., ViroPharma develops and markets drugs focused on viral diseases, including cytomegalovirus and hepatitis C.

The announcement was made in a ViroPharma 8-K filing with the Securities and Exchange Commission.

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