Under the terms of the agreement, AstraZeneca is expected to pay Map Pharmaceuticals an upfront cash payment of $40m and an additional $35m upon the successful achievement of primary endpoint and safety results in the currently ongoing Phase III clinical study. In addition, upon the occurrence of certain events and conditions, Map Pharmaceuticals is eligible to receive up to $240m in other potential development and regulatory milestones.
The agreement also provides for additional progressively demanding sales performance-related milestone payments of up to $585m in the event the product is a considerable commercial success. This agreement is subject to review by the US government under the Hart-Scott-Rodino Act and becomes effective after the expiration or earlier termination of the waiting period (or any extension thereof).
AstraZeneca is also expected to support and fund the establishment of a Map Pharmaceuticals sales force to co-promote Unit Dose Budesonide (UDB) in the US for a certain period of time after product launch. Map Pharmaceuticals is also eligible to receive significant double-digit royalty payments on net sales of UDB worldwide.
Map Pharmaceuticals and AstraZeneca is expected to develop UDB in the US and AstraZeneca has rights to develop and commercialize UDB outside of the US. Under the agreement, AstraZeneca will be responsible for future UDB development costs and AstraZeneca will reimburse Map Pharmaceuticals for the costs of future UDB development activities with respect to US registration incurred by Map Pharmaceuticals.