King signs agreement with Acura to develop pain drugs

The companies have initially targeted four immediate release opioid analgesic products, including Acurox tablets (oxycodone HCl, niacin, and a unique combination of other ingredients), for treating moderate to severe acute pain.

Under the terms of the agreement, King will make an upfront cash payment to Acura of $30 million. Depending on the achievement of certain development and regulatory milestones, King could also make additional cash payments to Acura of up to $28 million relating to Acurox tablets and similar amounts with respect to each subsequent Aversion technology product developed under the agreement.

King will reimburse Acura for all R&D expenses incurred beginning from September 19, 2007 for Acurox tablets and all R&D expenses related to future products after King’s exercise of its option to an exclusive license for each future product. King will record net sales of all products and pay Acura a royalty ranging from 5% to 25% based on the level of combined annual net sales for all products subject to the agreement.

Brian Markison, chairman, president and CEO of King, said: “This transaction demonstrates our commitment to building on our strengths in specialty markets where we have a strong presence and existing capabilities. We are excited about partnering with Acura, which directly aligns with our recently announced emphasis on King’s neuroscience and hospital/acute care platforms, particularly our growing pain management franchise.”