King, Acura sign agreement to develop pain killers

BRISTOL, Tenn. and PALATINE, Ill. King Pharmaceuticals and Acura Pharmaceuticals have entered into an agreement to license, develop and commercialize four immediate release opioid analgesic products, including the drug Acurox, for the treatment of moderate to severe acute pain, according to CNN's Money Web site.

King will receive an exclusive license for the drug in Mexico and will commercialize the product in the U.S., when the application is approved by the Food and Drug Administration.

Under the agreement, King will make an upfront payment of $30 million to Acura. Development and regulatory milestones could make King pay Acura up to $28 million relating to the drug and other payments with respect to each product developed using Acura’s Aversion Technology, which is used for product development.

King will reimburse Acura for all research and development expenses incurred from Sept. 19 for Acurox. For all products under the agreement, Acura will receive a royalty in the range of 5 percent to 25 percent based on combined annual net sales. King will also pay Acura a one-time cash payment of $50 million.