King Pharma, Pain Therapeutics Amend Strategic Alliance For Remoxy In Europe

Remoxy, being developed by King Pharmaceuticals, is a painkiller with a formulation designed to reduce potential risks of unintended use.

Apart from this drug, King Pharmaceuticals is also developing three other abuse-resistant painkillers pursuant to a strategic alliance with Pain Therapeutics.

King Pharmaceuticals will hold the sole responsibility for the commercialisation of Remoxy everywhere, except for Australia and New Zealand.

King Pharmaceuticals and Pain Therapeutics have entered into a strategic alliance make Remoxy available outside the US. For this purpose both have amended a royalty term of their strategic alliance.

As per the terms of the agreement, Pain Therapeutics is now expected to receive a flat royalty rate of 10% on net sales of Remoxy outside the US in exchange for a one-time payment of $5m from King to be made in July 2010.

Initially the agreement called for a royalty rate of 15% of net sales; with a provision to increase to 20% should certain net sales benchmarks be met.

As a result of the agreement King Pharmaceuticals will also gain certain rights related to the development of other opioid products covered by the collaboration agreement, which is not disclosed.

Pain Therapeutics said that its royalty rate in the US and milestone payments from King Pharmaceuticals remain unchanged.