Durect Says Novartis Ends Non-Opioid Painkiller Deal, Disputes Termination Fee
January 07 2019 - 2:34PM
Dow Jones News
By Colin Kellaher
Durect Corp. (DRRX) on Monday said Novartis AG's (NVS) Sandoz
unit had ended a deal to develop and commercialize Durect's Posimir
non-opioid postoperative painkiller and is disputing its obligation
to pay a termination fee.
The Cupertino, Calif., biopharmaceutical company agreed in May
2017 to license Posimir to Sandoz for a $20 million upfront fee, up
to $43 million in development and regulatory milestone payments,
and up to $230 million in sales-based milestones.
The companies amended the deal a year later, reducing the
potential development and regulatory milestone payments to $30
million, after a phase 3 study of Posimir missed its primary
endpoint.
Durect on Monday said Sandoz is returning its U.S. development
and commercialization rights to Posimir as part of a refocusing of
its resources but is disputing its obligation to pay a termination
fee. Durect said it has initiated a formal dispute resolution
process related to the fee, the amount of which hasn't been
publicly disclosed.
The company said it will evaluate and consider potential next
steps for Posimir.
Shares of Durect fell 12.6% to 57 cents in Monday afternoon
trading.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
January 07, 2019 14:19 ET (19:19 GMT)
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