Salix Pharma, Progenics in RELISTOR worldwide license agreement

The methylnaltrexone license includes intellectual property from the University of Chicago, Progenics Pharmaceuticals and Wyeth Pharmaceuticals, including patents and applications with expiration dates that will range from 2017 through 2031.

RELISTOR is a peripherally acting mu-opioid receptor antagonist that counteracts the constipating effects of opioid pain medications in the gastrointestinal tract without affecting their ability to relieve pain.

Financial terms of the transaction include a $60m up-front payment and development milestones totaling $90m, contingent upon the achievement of certain US regulatory milestones.

Salix also will pay sales-based milestones of up to $200m plus royalties on product sales in the US, as well as 60% of all revenue received from non-US sublicensees.

Salix will fund all development, registration and commercialization activities for RELISTOR in markets worldwide other than in Japan, where Progenics has licensed to Ono Pharmaceuticals the rights to develop and commercialize subcutaneous RELISTOR.

Salix will market RELISTOR directly through its specialty sales force in the US, and outside the US, RELISTOR will be marketed with sublicenses to regional companies.

The parties plan an April 2011 transition of RELISTOR commercial and development responsibility to Salix from Pfizer, which acquired Progenics’ former RELISTOR partner, Wyeth Pharmaceuticals.

While Salix effects a country-by-country transition of ex-US commercialization rights, Wyeth will remain the Marketing Authorization Holder for RELISTOR and will continue to supply product.

In the interim, Wyeth remains responsible for all manufacturing, clinical, medical and regulatory activities for RELISTOR outside of the US and Japan.