Pozen lifted by $375 million AstraZeneca alliance

The companies will attempt to create fixed dose combinations of the proton pump inhibitor (PPI) esomeprazole magnesium plus the non-steroidal anti-inflammatory drug (NSAID) naproxen in a single tablet. Such a product would be aimed at patients who are at risk for developing NSAID-associated gastric ulcers.

Under the terms of the agreement, AstraZeneca will pay Pozen an upfront fee totaling $40 million, with potential aggregate milestone payments of $160 million for certain development and regulatory milestones, and $175 million of potential sales performance milestones, if certain thresholds are achieved.

Royalties will be paid on net sales on a tiered royalty structure that ranges from mid-single digits to mid-teens.

Pozen will be responsible for the development and filing of the new drug application (NDA) in the US, while AstraZeneca will have full responsibility for development activities outside of the US as well as all aspects of manufacturing, marketing, sales and distribution on a worldwide basis.

“This collaboration is further evidence of the progress we are making in strengthening our pipeline of new products,” said Dr John Patterson, executive director of development for AstraZeneca. “We believe that the combination of esomeprazole and Pozen’s proprietary PN technology has the potential to address one of the key unmet medical needs for patients with chronic pain; namely, good pain relief coupled to a low risk of gastrointestinal ulcers and good tolerability.”