Shionogi in up to $425 million abuse-deterrent opioid deal with Egalet

Japanese drug major Shionogi (TYO: 4507) has entered into a collaborations and licensing agreement with US biotech firm Egalet Corp (Nasdaq: EGLT) for the development and potential commercialization of multiple oral abuse-deterrent hydrocodone opioid product candidates using Egalet’s proprietary technology.

Under the terms of the deal, worth as much as $425 million in total, Egalet will receive a $10 million upfront and Shionogi has agreed to purchase up to about $15 million in common stock in a private placement to close concurrently with Egalet’s recently-filed initial public offering. Egalet is eligible to receive milestone payments upon development and approval of products under the agreement, which may exceed $300 million if multiple products are approved.