Acura receives $30M from King Pharma deal

USA-based Acura Pharmaceuticals has received a $30.0 million payment from fellow US company King Pharmaceuticals under a licensing deal established between the two firms. The agreement, which was announced in October, covers the development of abuse deterrent analgesics using Acura's Aversion technology.

Under the terms of the agreement, King has been granted an exclusive license to Acura's Acurox (oxycodone HCl) and a second opioid-based product candidate in the USA, Canada and Mexico. The deal also provides King with a territory-wide option to license all other products developed using the Aversion platform. In return, Acura could receive an additional cash payment of up to $28.0 million for Acurox and similar amounts for other drugs that are optioned.

Tennessee-headquartered King has also agreed to reimburse Acura for all Acurox development expenses incurred, beginning September 19, 2007, and will pay similar costs on subsequent licensing deals. King will also provide royalties of between 5% and 25% based on the combined net sales of all products covered by the agreement.