Altus signs $4 million agreement with Zogenix to license Zohydro ER

Altus Pharmaceuticals, a private Montreal-based drugmaker, has entered into an agreement with USA-based Zogenix (Nasdaq: ZGNX) to develop abuse deterrent formulations of Zohydro ER (hydrocodone bitartrate) using Altus’s Intellitab drug delivery platform.

Zohydro was approved by the US Food and Drug Administration last month with some controversy as some trade bodies felt it was an irresponsible decision considering the FDA’s recent reclassification of hydrocodone products.

Under the agreement, Altus has granted Zogenix an option to enter into an exclusive license on mutually agreed terms to develop and commercialize abuse deterrent formulations of Zohydro ER in the USA. Zogenix will pay Altus a technology access fee of $750,000. Zogenix will fund all development activities and Altus may earn an additional $3.5 million in development and regulatory milestones through to submission of a New Drug Application. Following exercise of the option, Altus will be eligible to receive additional regulatory and sales milestone payments and royalties based on net sales of the licensed product.