Egalet to collaborate with Shionogi to develop abuse-deterrent oral hydrocodone opioid product candidates
Will receive upfront and milestone payments plus potential royalties on net sales
US-based pharmaceutical firm Egalet, a developer of abuse-deterrent oral products for the treatment of pain, has signed a collaboration and licensing deal with Shionogi of Japan, which could be worth US$300m, for the development and commercialisation of multiple hydrocodone opioid product candidates using Egalet’s proprietary technology.
Under the deal, Egalet will receive a US$10m upfront payment from Shionogi, which has agreed to purchase about $15m in common stock in a private placement to close at the same time as Egalet’s recently filed initial public offering.
In addition, Egalet is eligible to receive milestone payments upon development and approval of products, which may exceed $300m if multiple products are approved.
Shionogi will fund all costs associated with the development of these products and will also have exclusive global rights to market the resulting products.
If any products developed under the collaboration are approved for marketing, Egalet is eligible to receive tiered royalties and sales-based milestone payments that could exceed $100m based on the attainment of specified sales thresholds.
Egalet's President and CEO Bod Radie said the firm is pleased to be collaborating with Shionogi for the development and potential commercialisation of abuse-deterrent hydrocodone products using its proprietary technology.
'We believe this collaboration provides validation for our proprietary abuse-deterrent drug delivery platform and positions us to capitalize on our technology, both through the products to be developed under the collaboration and by enabling us to develop additional opioid candidates utilising our platform technology.'
