DURECT Corp. (DRRX:NASDAQ) announced that it has received a $5 million milestone payment from Indivior Plc (INDV:LON), triggered by Indivior's approval of the New Drug Application (NDA) for PERSERIS (risperidone) in July 2018.
"On September 26, 2017, DURECT entered into a patent purchase agreement whereby DURECT assigned to Indivior UK Limited, an affiliate of Indivior PLC, certain patents that may provide further intellectual property protection for PERSERIS," stated the company. "In consideration for such assignment, Indivior made an upfront non-refundable payment to DURECT of $12.5 million and also agreed to make an additional $5 million payment to DURECT contingent upon NDA approval of PERSERIS, which occurred in July 2018."
Under the agreement, DURECT is also entitled to receive quarterly earn-out payments based on a single digit percentage of U.S. net sales for certain products covered by the assigned patent rights, including PERSERIS, noted DURECT. The patent rights include granted patents extending through at least 2026.
"We are pleased with the FDA decision to approve the NDA for PERSERIS," stated James E. Brown, D.V.M., president and CEO of DURECT. "Our agreement with Indivior provides us with an economic interest in PERSERIS with the potential for our shareholders to benefit from future sales of this product."
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