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news.SkyePharma has entered into an exclusive agreement with New Jersey-based Somnus Therapeutics for the worldwide development and commercialization of its sleep therapeutic.
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The drug, SKP-1041, is a new controlled release formulation of a non-benzodiazepine hypnotic agent which utilizes UK-based SkyePharma’s Geoclock technology. As part of the agreement, SkyePharma will formulate and manufacture SKP-1041. Recent estimates suggest that the worldwide market for hypnotics is $3 billion, according to the company.
Under the terms of the agreement, SkyePharma could receive up to $35 million in milestone payments, of which $4 million is payable on signature, up to $11 million is payable during the development phase, mainly on product approval and $20 million is sales-related. The first milestone payment will be triggered by the successful completion of the phase I clinical study of the product.
SkyePharma will also receive a royalty on future sales escalating upwards from high-mid single digit. In addition, Somnus will be responsible for the majority of the development and clinical trial costs.
SkyePharma’s chief executive, Frank Condella, said: “We are very pleased to be working with Somnus Therapeutics to develop and bring to market SKP-1041, which we believe will be an exciting new product for patients with sleep disorders.”