IDEA stands to make up to $202 million through a license agreement with Alpharma Ireland. The company obtained exclusive U.S. rights to ketoprofen in Transfersome® gel. The treatment is a topical NSAID in Phase III development.
The transaction includes access to IDEA’s Transfersome technology platform that delivers drugs locally to targeted areas.
The terms of the license agreement between Alpharma Ireland and IDEA include a $60 million payment at closing. The deal also calls for three milestone payments based on clinical and regulatory progress totaling $77 million that are expected to be made later this year or in 2008. An additional milestone payment of either $45 or $65 million, depending upon the results of one clinical trial, is conditioned on U.S. product approval.
IDEA has agreed to pay the costs of specified studies being undertaken to obtain FDA approval, and Alpharma expects to incur minimal R&D expense prior to approval.
Based on FDA green light, the agreement also includes commitments for commercialization expenditures during the first four years following the product launch, the payment of royalties based on product sales, and the issuance of shares of Alpharma's common stock.