Santarus achieved a $5-million milestone in its license agreement with Schering-Plough HealthCare Products for its proton pump inhibitor (PPI).
The over-the-counter (OTC) license agreement gives Schering-Plough the right to develop, manufacture, and commercialize OTC products using Santarus' PPI technology with the lower-dosage strength of 20 mg of omeprazole for heartburn-related indications in the U.S. and Canada. Santarus will continue to manufacture and sell its Zegerid prescription products in both 20-mg and 40-mg dosage strengths in the U.S.
In addition to the $15 million Santarus received upfront and this milestone fee, the company could receive up to $60 million in milestone payments plus low double-digit royalties. In turn, Santarus will be obligated to pay royalties to the University of Missouri on net sales of any such OTC products.