Egalet US, Inc. and Egalet Limited entered into collaboration and license agreement to acquire exclusive worldwide rights to commercialize Oxaydo from Acura Pharmaceuticals, Inc. for $20 million.
January 08, 2015 at 09:30 am IST
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Egalet US, Inc. and Egalet Limited entered into collaboration and license agreement to acquire exclusive worldwide rights to commercialize Oxaydo from Acura Pharmaceuticals, Inc. (NasdaqCM:ACUR) for $20 million on January 7, 2015. Egalet will pay Acura an upfront payment of $5 million dollars within 10 days after signing of the agreement and a $2.5 million milestone on the earlier to occur of the launch of Oxaydo and January 1, 2016, but in no event earlier than June 30, 2015. In addition, Acura will be entitled to a one-time $12.5 million milestone payment when Oxaydo net sales reach a specified level of $150 million in a calendar year. The transaction will be funded from debt financing with Hercules Technology Growth Capital of $15 million.
Egalet may terminate the agreement for convenience on 120 days prior written notice, which termination may not occur prior to the second anniversary of Egalet's launch of Oxaydo. Egalet also may terminate the agreement prior to the launch of Oxyado on 30 days prior written notice upon the occurrence of serious safety issues, regulatory restrictions and intellectual property issues, in each case involving Oxaydo. E. Blair Clark-Schoeb of BiotechComm acted as public relations advisor to Egalet.
Acura Pharmaceuticals, Inc. is a drug delivery company engaged in the research, development, and commercialization of technologies and products to address the safe use of medications. Its platform technologies include LIMITX Technology, AVERSION Technology, and IMPEDE Technology. Its LIMITX Technology is designed to minimize the risks and side effects associated with overdose by retarding the release of active drug ingredients when too many tablets are accidentally or purposefully ingested. The LIMITX Technology is in development with hydrocodone bitartrate and acetaminophen (also known as LTX-03) as the lead product candidates. Its AVERSION Technology is to address methods of product tampering associated with opioid abuse by incorporating gelling ingredients and irritants into tablets to discourage abuse by snorting and provide barriers to abuse by injection. Its IMPEDE Technology is directed at minimizing the extraction and conversion of pseudoephedrine tablets into methamphetamine.
Egalet US, Inc. and Egalet Limited entered into collaboration and license agreement to acquire exclusive worldwide rights to commercialize Oxaydo from Acura Pharmaceuticals, Inc. for $20 million.
ACURA PHARMACEUTICALS, INC. 
