Endo Pharma in $180 million deal with BioDelivery Sciences

8 January 2012

US drugmaker Endo Pharmaceuticals (Nasdaq: ENDP) has signed a worldwide license and development agreement with USA-based BioDelivery Sciences International (Nasdaq: BDSI) for BEMA Buprenorphine, a now off-patent narcotic analgesic compound. The news saw BioDelivery's shares rocket 133% to $1.96 in morning trading on Friday.

In aggregate, the agreement is worth up to $180 million to BDSI if all milestones are met. Financial terms of the agreement include: $30 million upfront payment to BDSI upon execution of the definitive agreement; $95 million in potential milestone payments based on achievement of pre-defined intellectual property, clinical development and regulatory events; $55 million in potential sales milestones upon achievement of designated sales levels; and tiered, mid to upper teen royalty on US net sales

BEMA Buprenorphine is a transmucosal form of buprenorphine, a partial mu-opiate receptor agonist, which incorporates a bioerodible mucoadhesive (BEMA) technology. BEMA Buprenorphine is currently in phase III trials for the treatment of moderate to severe chronic pain.

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