Adolor to pay GSK $25 million plus royalties to reacquire Entereg rights

USA-based Adolor Corp (NasdaqGM: ADLR) has reached agreement with UK pharma giant GlaxoSmithKline (LSE: GSK) to reacquire all rights to Adolor's FDA-approved gastrointestinal drug Entereg (alvimopan). The transaction is expected to close in September 2011.

Currently, Entereg is co-promoted by Adolor and GSK in the USA for postoperative ileu, but GSK returned rights to the drug in the treatment of chronic opioid bowel dysfunction in September 2008. Entereg generated net product sales of $25.4 million in 2010 and $14.6 million in 2009, the first full year it was in the market.

Under the terms of the accord, Adolor has agreed to pay to GSK $25 million cash, staged over a six-year period, with $2.5 million payable in 2011, tiered, mid-single digit royalties on annual net sales and a further one-time, sales-related milestone of $15 million.