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news.Santarus has received a $5 million milestone payment from Schering-Plough HealthCare Products for proton pump inhibitor products as part of an over-the-counter license agreement.
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Under the terms of the OTC license agreement, Schering-Plough is responsible for the development, manufacturing and commercialization of OTC products using Santarus’ proton pump inhibitor (PPI) technology with the lower dosage strength of 20mg of omeprazole for heartburn-related indications in the US and Canada.
Specialty pharmaceutical company Santarus will continue to manufacture, promote and sell its Zegerid (omeprazole/sodium bicarbonate) prescription products in both 20mg and 40mg dosage strengths of omeprazole in the US prescription market for PPI products.
In addition to the $15 million upfront license fee received in November 2006 and this $5 million milestone, the company may receive up to an additional $60 million in milestone payments upon the achievement of certain regulatory and sales milestones.
Santarus, which focuses on gastroenterology products, will also be entitled to a low double-digit royalty, subject to adjustment in certain circumstances, on net sales of any OTC products sold by Schering-Plough under the license agreement. In turn, San Diego-based Santarus will be obligated to pay royalties to the University of Missouri on net sales of any such OTC products.