Pozen licenses rights to investigational migraine therapy in several European countries to Desitin Arzneimittel

Pozen Inc. entered into a license agreement with Desitin Arzneimittel GmbH granting Desitin the rights to Pozen's MT 400, an investigational, multiple-mechanism migraine therapy that combines sumatriptan succinate and naproxen sodium, in 29 European countries. Under the terms of the agreement, Desitin will pay Pozen an initial sum up front, followed by milestone payments in connection with the development and launch of the drug in certain countries. Precommercialization payments will total...

Pozen Inc. entered into a license agreement with Desitin Arzneimittel GmbH granting Desitin the rights to Pozen's MT 400, an investigational, multiple-mechanism migraine therapy that combines sumatriptan succinate and naproxen sodium, in 29 European countries.

Under the terms of the agreement, Desitin will pay Pozen an initial sum up front, followed by milestone payments in connection with the development and launch of the drug in certain countries. Precommercialization payments will total $3 million, including $500,000 that is due upon signing.

Desitin will also pay Pozen a double-digit royalty on net sales of the drug, with the size of the royalty dependent on annual sales volume.

Desitin will be Pozen's exclusive licensee for MT 400 in Switzerland, Norway and the 27 countries of the European Union and will be responsible for all remaining clinical development, manufacturing and commercialization activities for the drug in these territories.

The agreement will expire on a country-by-country basis 15 years after the first commercial sale of the drug in each country, unless terminated earlier.

Pozen previously licensed the U.S. rights to MT 400 to GlaxoSmithKline Plc, which markets the combination therapy under the brand name Treximet. Last year, Pozen also licensed the rights to the drug in several South American countries to Cilag GmbH International, a division of Johnson & Johnson.