Santarus and Schering-Plough sign heartburn drug agreement

Santarus expects to receive a $15 million upfront license fee payable under the over-the-counter license agreement.

Under the terms of the agreement, Schering-Plough will be responsible for the development, manufacturing and commercialization of Zegerid products with the lower dosage strength of 20mg of omeprazole for heartburn-related indications. Santarus will continue to manufacture, promote and sell Zegerid products in both 40mg and 20mg dosage strengths of omeprazole for their approved prescription indications in the US.

In addition to the $15 million upfront license fee, Santarus may receive up to an additional $65 million in milestone payments. Santarus will also receive a royalty on sales of any Zegerid products sold. Santarus will be obligated to pay to the University of Missouri a royalty based on any Zegerid sales pursuant to a license agreement between Santarus and the University of Missouri.