Sandoz, the generics arm of Novartis, has formed a development and commercialization agreement, worth up to $293 million, with Durect Corporation, a biopharmaceutical company with proprietary drug-delivery technology,for an investigational locally acting, non-opioid analgesic.

The pact applies to Durect’s Posimir (bupivacaine), which uses Durect’s patented Saber technology that is based on sucrose acetate isobutyrate (Saber) to produce an extended-release depot that delivers bupivacaine to a surgical site for 72 hours to provide up to three days of continuous pain relief after surgery. The drug is currently in Phase III development for patients undergoing gall bladder removal.

Under the agreement, Sandoz will make an upfront payment to Durect of $20 million, with the potential for up to an additional $43 million in development and regulatory milestones, up to an additional $230 million in sales-based milestones, and a tiered double-digit royalty on product sales in the US. Durect will remain responsible for the completion of the ongoing Phase III clinical trial for Posimir as well as FDA interactions through approval.

The deal is expected to close in the second quarter of 2017 and is contingent on completion of review under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976.

Source: Durect