Pozen gets $40M upfront payment from AstraZeneca

North Carolina, USA-based Pozen has received a $40.0 million initial upfront payment from Anglo-Swedish drug major AstraZeneca in connection with the exclusive global collaboration agreement between the two companies. The previously-announced accord has cleared the waiting period required under the Hart-Scott-Rodino Anti-trust Improvements Act making the agreement effective.

Pozen entered into the deal with AstraZeneca on August 1, for the co-development and commercialization of proprietary fixed dose combinations of the proton pump inhibitor esomeprazole magnesium, with the non-steroidal anti-inflammatory drug naproxen, in a single tablet. The products will be indicated for the management of pain and inflammation associated with conditions such as osteo- and rheumatoid arthritis in patients who are at risk for developing NSAID-associated gastric ulcers.

In addition to this upfront payment, Pozen is eligible to receive up to $160.0 million for certain development and regulatory milestones; and $175.0 million in potential sales performance milestones, if certain thresholds are achieved. In addition, royalties will be paid on net sales on a tiered royalty structure that ranges from mid-single digits to mid-teens.