With a market cap of under 300 million. The outset cash infusion should add over $ 3.50 dollar of cash on a six dollar stock.
King buys rights to abuse-resistant narcotic -NYT
Thu Nov 10, 2005 04:45 AM ET
NEW YORK, Nov 10 (Reuters) - King Pharmaceuticals (KG.N: Quote, Profile, Research) plans to announce Thursday that it has obtained the rights to an abuse-resistant version of painkiller OxyContin from biotech company Pain Therapeutics, the New York Times said.
King will pay Pain Therapeutics (PTIE.O: Quote, Profile, Research) $150 million at the outset and up to $150 million more depending on progress in gaining regulatory approval for the drug, Remoxy, and in the development of other abuse-resistant opioid painkillers, the paper said.
King, of Bristol, Tennesee, will also pay research and development costs and royalties to Pain Therapeutics.
Remoxy, like Oxycontin made by Purdue Pharma, releases the narcotic oxycodone slowly over a matter of hours. But people have figured out how to extract OxyContin's entire dose at once, producing a euphoric high.
Pain Therapeutics says this cannot easily be done with Remoxy, the newspaper reported.
King and Pain Therapeutics plan to begin a final-stage clinical trial in January. If the trial is successful, they said, they plan to file an application in 2007 for approval of Remoxy, the Times said.
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