Durect and Nycomed will jointly develop Durect’s Posidur™ post-operative pain relief depot. Posidur is currently in Phase II trials. Under the terms of the agreement, Nycomed will pay Durect an upfront license fee of $14 million, with additional milestone payments of up to $188 million upon achievement of defined development, regulatory, and sales milestones.
The two parties will jointly direct and equally fund a development program for Posidur intended to secure regulatory approval in both the U.S. and the E.U.
Nycomed will have exclusive commercialization rights in Europe and other select countries, and Durect will retain full ownership of Posidur in the U.S., Canada, Asia, and other countries. Durect will manufacture and supply the product to Nycomed for sale. Nycomed will pay Durect blended royalties on sales in the defined territory of 15–40% depending on annual sales.