SCOLR Pharma licenses ondansetron formulation to Israel's RedHill for up to $30 million

USA-based SCOLR Pharma has executed a licensing agreement with Israeli company RedHill Biopharma for the worldwide rights to market and sell ondansetron tablet formulations based on SCOLR's proprietary extended delivery technology (CDT). Ondansetron is the active ingredient in Zofran, UK giant GlaxoSmithKline's drug to prevent chemotherapy and radiation related nausea and vomiting.

Under the terms of the deal, RedHill has agreed to make up front and additional payments to SCOLR up to $600,000 based on achievement of certain regulatory milestones and the first commercial sale of the product and thereafter make payments to the company up to a maximum of $30 million based on the aggregate net sales by RedHill of the licensed product over a ten year period.

Stephen Turner, SCOLR's president and chief executive, said: "We believe RedHill is a strong partner to collaborate with for the further development of our CDT-based ondansetron tablet formulations. As SCOLR continues to progress its pipeline of products, we will look for key strategic alliances, such as this licensing agreement with RedHill, to maximize the value of our pharmaceutical and nutritional product portfolio."