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news.UK-based SkyePharma has entered into an exclusive agreement with Somnus Therapeutics for the worldwide development and commercialization of its sleep disorder therapeutic.
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The drug, SKP-1041, is a new controlled release formulation of a non-benzodiazepine hypnotic agent which utilizes SkyePharma's Geoclock technology.
As part of the agreement, SkyePharma will formulate and manufacture SKP-1041. According to the companies, recent estimates suggest that the worldwide market for hypnotics is $3 billion.
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.