Santarus gets $5M milestone form S-P

Santarus, a specialty US pharmaceutical company, says that it has received a $5.0 million milestone payment relating to progress on clinical product development strategy under its over-the-counter license agreement with Schering-Plough HealthCare Products for proton pump inhibitor products using Santarus' patented PPI technology.

Under the terms of the OTC license accord, S-P is responsible for the development, manufacturing and commercialization of OTC products using Santarus' PPI technology with the lower dosage strength of 20mg of omeprazole for heartburn-related indications in the USA and Canada. Santarus will continue to manufacture, promote and sell its Zegerid (omeprazole/sodium bicarbonate) prescription products in both 20mg and 40mg dosage strengths of omeprazole in the US prescription market for PPI products.

In addition to the $15.0 million upfront license fee received in November 2006 and this $5.0 million milestone, the company may receive up to a further $60.0 million on the achievement of certain regulatory and sales milestones. Santarus will also be entitled to a low double-digit royalty, subject to adjustment in certain circumstances, on net sales of any OTC products sold by S-P under the license agreement. In turn, Santarus will be obligated to pay royalties to the University of Missouri on net sales of any such OTC products.