Santaurus and GSK in licensing deal

San Diego, USA-based specialty pharmaceutical company Santarus has signed a deal with UK drug major GlaxoSmithKline. The agreement grants the latter exclusive rights to commercialize some of the former's prescription and over-the-counter immediate-release omeprazole products in Africa, Asia, the Middle East and both Central and South America.

Under the terms of the license, GSK will pay Santarus $11.5 million upfront and has agreed to provides royalties on the sale of products successfully brought to market. Further financial details of the accord were not disclosed.

News of the agreement, which also enables the UK firm to sell Zegerid (omeprazole/sodium bicarbonate) in Puerto Rico and the US Virgin Islands, caused Nasdaq-listed Santarus' share price to climb 5.5% to $2.68. Since then, however, the company's price has fallen back 3% to $2.60. Friedman Billings analyst David Amsellem reaffirmed his outperform rating for Santaurs and issued a $4.00 per share price target.