Hospira Inks Licensing Agreement With Durect

The collaboration is to develop and market Durect’s Posidur (Saber-bupivacaine) a long-acting version of the anesthetic bupivacaine currently in Phase III clinical trials.

Reportedly, Hospira is expected to co-develop the drug and would have exclusive marketing rights in the US and Canada following regulatory approval.

As per terms of the agreement, Hospira will make an upfront payment of $27.5m, with the potential for up to an additional $185m in performance milestone payments based on the successful development, approval and commercialisation of Posidur.

For the US and Canada, the two companies are expected to jointly direct and equally fund the remaining development costs, while Hospira will have exclusive commercialization rights with sole funding responsibility. In addition, Hospira will pay Durect a royalty on product sales.

Durect said that Posidur is designed to provide up to 72 hours of anesthetic directly at the site of a surgical wound, with the potential to reduce post-surgical pain and allow earlier patient mobility and hospital discharge. Phase III trials are expected to be completed in 2011.

Andrew Robbins, vice president of corporate development and proprietary pharmaceuticals at Hospira, said: “This partnership with Durect provides Hospira with US and Canadian rights to an exciting new product. Posidur is being developed to improve post-surgical recovery, which represents a good fit with our vision of advancing wellness for patients.”

James Brown, president and CEO of Durect, said: “This collaboration builds on the relationship we’ve had with Hospira for several years as our manufacturer of Posidur. We believe that Posidur has the potential to play a significant role in treating post-surgical pain, reducing the need for systemic narcotic pain relief and associated side effects, as well as costs associated with lengthy hospital stays.”