Acura Pharmaceuticals received an initial $30 million nonrefundable cash payment for closing a license, development, and commercialization agreement for opiod products with King Pharmaceuticals Research and Development.
The deal provides King with an exclusive license in the U.S., Canada, and Mexico for pain medication Acurox™ plus another undisclosed opioid. In addition, the agreement provides King with an option to license in North America all future opioid analgesic drugs developed utilizing Acura's Aversion technology.
On top of the $30 million initial fee, Acura could also receive additional cash payments from King of up to $28 million for Acurox tablets. The company will also obtain similar amounts with respect to each future product licensed based on successful achievement of certain development and regulatory milestones.
King will reimburse Acura for all Acurox tablet R&D expenses incurred from September 19 and all R&D costs related to future products to which King decides to exercise its exclusive license.
King will record net sales of all products and pay Acura a royalty ranging from 5% to 25% based on the level of combined annual net sales for all products subject to the agreement. Acura will also get a one-time cash payment of $50 million in the first year in which the combined annual net sales of all licensed products exceed $750 million.