Egalet/Shionogi Enter Deal For Abuse-Deterrent Hydrocodone Products
Egalet has entered into a definitive collaboration and licence agreement with Shionogi for the development and potential commercialisation of multiple oral abuse-deterrent hydrocodone opioid product candidates using Egalet's proprietary technology.
Egalet will receive a US$10mn up-front payment from Shionogi, and Shionogi has agreed to purchase up to approximately US$15mn in common stock in a private placement to close concurrently with Egalet's recently filed initial public offering. Egalet is eligible to receive milestone payments upon development and approval of products under the agreement, which may exceed US$300mn if multiple products are approved. Shionogi will fund all costs associated with the development of these products. Shionogi will also have exclusive global rights to commercialise the resulting products. If any products developed under the collaboration are approved for marketing, Egalet is eligible to receive tiered royalties, ranging from the mid-single digits to the low double digits based on the net sales of such products, as well as sales-based milestone payments that could exceed US$100mn based on the attainment of specified sales thresholds.
Hydrocodone is an opioid agonist used in the treatment of mild-to-moderate pain. It is currently available as a single agent or in combination with other analgesics, such as acetaminophen (eg, Vicodin). Abuse of prescription opioids has become a national epidemic in the US. There are no abuse-deterrent hydrocodone single-agent or combination products currently on the market.