Peter,
I remember you saying you were of two minds about PTIE on the Valuation thread a while back. Feel better about POZN? This deal is interesting because they talk of expanding into areas beyond migraine . . .
>>CHAPEL HILL, N.C. & ROSKILDE, Denmark--(BUSINESS WIRE)--July 22, 2003--POZEN Inc. (NASDAQ: POZN - News), and Nycomed announced today that they signed an exclusive option agreement, under which POZEN may acquire from Nycomed a license to certain rights related to lornoxicam, a non-steroidal anti-inflammatory drug (NSAID).
POZEN paid an upfront fee of $50,000 to Nycomed upon signing the option agreement. During the term of the option agreement, POZEN will explore the development of novel product candidates containing lornoxicam alone or in combination with other active ingredients for pain or other indications. Depending upon the achievement of certain milestones, up to an additional $450,000 is payable under the option agreement.
In the event that POZEN elects to exercise the option, it will pay Nycomed additional fees, including certain license fees, regulatory approval milestones and royalties on sales of any products developed using the licensed rights. Additionally, POZEN will fund product development and retain exclusive commercialization rights in the U.S. and Canada and semi-exclusive rights in select European countries. Nycomed will have a right of first negotiation for commercialization rights in the Nordic countries for any future products developed by POZEN combining lornoxicam with another active ingredient.
Nycomed's lornoxicam is approved and marketed in most European countries, and in several countries in the Middle East, South America and Asia, including Japan and China (brandnames Xefo, Xafon, Acabel, Lorcam).
"Lornoxicam is a potent analgesic pain reliever, which makes it an attractive candidate for combination therapy," said John R. Plachetka, Pharm.D., chairman, president, and chief executive officer of POZEN. "This option agreement serves as an important first step for POZEN to expand into new therapeutic areas."
"Nycomed has continuously developed new formulations of lornoxicam, most recently a Quick Release formulation, which is under approval in several countries. The option agreement with POZEN is an endorsement of the continuing value of lornoxicam in pain treatment. Nycomed is looking forward to follow POZEN's work with the compound in order to further exploit lornoxicam's potential," said Hakan Bjorklund, chief executive officer of Nycomed. <<
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Cheers, Tuck |
