Durect amends deal with Sandoz

US biotech firm Durect (Nasdaq: DRRX) has entered into an amendment to the development and commercialization agreement with Sandoz, a division of Swiss pharma giant Novartis (NOVN: VX), regarding Posimir (Saber-bupivacaine) in the USA, with news of the improved terms sending the US company’s shares up 8.3% to $1.95 in pre-market trading this morning.

The drug, previously known as Posidur, is an investigational locally-acting, non-opioid analgesic intended to provide up to three days of continuous pain relief after surgery.

Under the amended agreement, Durect is now eligible for up to $30 million in milestone payments based on New Drug Application (NDA) approval, and remains eligible for up to an additional $230 million in sales-based milestones. Each party is now also permitted to develop or commercialize competing products. The amendment also includes modifications to Durect's development obligations and to both parties' termination provisions, including a right for Durect to terminate for convenience prior to NDA approval. There is also a new termination fee payable to Durect in the event that Sandoz terminates the agreement for convenience. The agreement between the two companies remains in full force and effect, except as expressly covered in the amendment.